Chow Tai Fook seeks to remove Giordano's CEO

Chow Tai Fook, which holds a 24% stake in Giordano International, is seeking to remove Peter Lau from his role as chief executive officer of the company, after it failed to acquire Giordano in 2022.

According to a stock exchange filing on Monday (5 February), Sino Wealth International, a subsidiary of Chow Tai Fook owned by billionaire Henry Cheng (鄭家純), has made the requisition to remove Giordano's Chairman and CEO Peter Lau from his position. Sino Wealth International holds approximately 24.06% of the total issued shares of Giordano.

Sino Wealth has proposed to remove Peter Lau from his position as chief executive and director of Giordano and to appoint Currie Colin Melville Kennedy as the new chief executive of the company with immediate effect on or as soon as possible after the date of the passing of the relevant resolutions. One of Ng's previous positions was as the managing director of Adidas AG in China, according to HKEJ. 

Meanwhile, Sino Wealth proposed to appoint two of Cheng's children, including Sonia Cheng and Christopher Cheng, as non-executive directors. It also proposed to name Victor Huang as an independent non-executive director. 

According to the report, Giordano has faced shrinking business and intense competition in the industry over the past decade. The effectiveness of their old strategies may no longer be effective. Furthermore, as Lau nears the retirement age of 70, it is believed that bringing in professionals with international experience is necessary to manage and expand the company.

While the special general meeting shall be held within two months after the deposit of such requisition, the board is seeking legal advice as to the appropriate course of action to be taken.

Don’t miss: Giordano chairman rejects Chow Tai Fook's sale offer

Back in August 2022, Lau refused to sell his stake to Chow Tai Fook Enterprise, which previously offered to acquire the clothing retailer. 

According to the public announcements of Giordano, Lau and executive director Chan Ka Wai do not intend to accept the share offer. Lau further explained in the press conference of Giordano's interim results that the reason behind his rejection is due to his personal financial management. He added that there is no need to cash out at the moment, hence he doesn't see a reason to sell his stake.

Related articles:

Giordano chairman rejects Chow Tai Fook's sale offer
HK tycoon Henry Cheng seeks to take control of Giordano International
Giordano to downsize HK operations