Fashion retail brand Ted Baker has announced plans to create a joint venture to further expand in China.
Under the agreement Ted Baker’s joint venture (JV) partner Shanghai LongShang will operate its stores and online presence in China, Hong Kong and Macau.
The company said the JV would build more stores and concessions and further invest in the brand’s online capabilities.
Ted Baker said it would make a net cash contribution of 30 million renminbi (£3.4m) in return for a 50 per cent stake in the JV.
Shanghai LongShang will assign its rights to a newly formed investment vehicle made up of Chinese retail companies LongGoal and Infra-Apparel.
Ted Baker said the pair’s local expertise would help the brand to expand in the region.
Acting chief executive Lindsay Page said: “We are very excited about the next stage in the growth of Ted Baker across the significant Chinese market.”
She added: “In LongGoal and Infra-Apparel we have extremely capable partners that bring local market expertise to our brand and already well-established design, buying and merchandising skill set.
“We firmly believe that China has the long-term potential to become one of the largest single global territories for the Ted Baker brand.”
Ted Baker currently has three stores in Hong Kong and five stores and a major outlet store in China, as well as five concessions within department stores across the region.