Small cap movers: Bagir to sue cash-strapped Chinese fashion giant

Home UK Small cap movers: Bagir to sue cash-strapped Chinese fashion giant
Small cap movers: Bagir to sue cash-strapped Chinese fashion giant

Bagir Group Ltd (LON:BAGR) was out of fashion this week after the Israeli tailor announced it is taking legal action against Chinese giant Shandong Ruyi.

Once touted the “LMVH of China”, the fashion conglomerate is now drowning in billions worth of debt following an acquisition spree of European brands such as Sandro and TM Lewin.

Only last month the group was added to a cotton supply blacklist after it failed to pay compensation to a Bangladeshi company following an arbitration case.

In the case of Bagir, Shandong Ruyi was meant to buy a 53.7% stake in the suit designer for US$16.5mln, but had to push back the completion date by nine months, with the new deadline set at 31 March.

As part of the transaction, Shandong Ruyi had committed to deliver US$1.3mln worth of equipment to Bagirs Ethiopian factory by last September.

However, the goods still have not shown up, leaving Bagir to sue over breach of contract.

Investors will wonder whether the tailor will ever see any money. The shares ended the week down 14% to 0.5p.

Model train maker Hornby PLC (LON:HRN) was headed in the opposite direction as it chuffed 5% higher to 38p after raising £15mln to reinvigorate its iconic brands and fuel its digital marketing strategy.

The cash call was backed by the companys two main investors, Phoenix Asset Management Partners and Artemis Investment Management, who between them own 90% of the business.

Looking at the wider market, the AIM All-Share rose 1% to 976, outperforming the FTSE 100 which was flat at 7,415.

In a week of tech risers, esports specialist Gfinity PLC (LON:GFIN) jumped 28% to 1p on the back of its winner-stays-on gaming experience at the VidCon London 2020 festival happening this weekend.

Crimson Tide PLC (LON:TIDE) surged 13% to 2p on a series of contract awards worth £600,000, as firms in the rail sector flocked to use mpro5, its app designed to help businesses manage their staff.

Seed investor Frontier IP Group PLC (LON:FIPP) advanced 20% to 78p thanks to portfolio firm Cambridge Raman Imaging, which was awarded a €140,000 EU grant for the development of its scanning microscope.

Immunodiagnostics group Oncimmune PLC (LON:ONC) soared 37% to 60p on another award, as the UK Department for International Trade crowned it 'Winning in Business in Spain'.

Moving onto the media sector, Ebiquity PLC (LON:EBQ) leaped 33% to 36p as it said full-year trading that was “in line” with its expectations after cutting down debt.

Natural resources player Oracle Power PLC (LON:ORCP) was jolted 28% higher to 0.9p, thanks to a new consortium with China National Coal Development and Dubai billionaire to develop a lignite coal mine plus a power plant in Pakistan.

In the US, Tertiary Minerals PLC (LON:TYM) rocketed 66% to 0.3p as it starts drilling at its Pyramid gold project to confirm historic exploration results.

Some of its competitors had a lacklustre week, such as Conroy Gold, down 9% to 13p after raising £302,500 by selling shares at an 11% discount.

Likewise, BlueRock Diamonds slipped 9% to 87p after selling shares for £1.9mln at a 13% discount to speed up production at its Kareevlei mine in South Africa.

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