After Glencore, Coach also set to exit HK stock market

A Coach store (left) on Queen's Road in Hong Kong. Both Coach and Glencore cited weak demand for their shares as the reason to delist.
A Coach store (left) on Queen's Road in Hong Kong. Both Coach and Glencore cited weak demand for their shares as the reason to delist.PHOTO: BLOOMBERG

HONG KONG • Luxury brand Coach Inc said it had applied to delist from the Hong Kong stock exchange, dealing another blow to the financial hub, a day after commodities trader and miner Glencore said it planned to withdraw its listing from the city.

Coach and Glencore launched secondary listings in Hong Kong in 2011 and their departures come as the Chinese city's stock exchange is struggling to attract international companies.

Both companies cited weak demand for their shares as the reason to cease trading in Asia.

Coach did not specify a timeline for its exit, while Glencore said its withdrawal was expected to become effective on Jan 31, 2018.

Their listings followed a record year for initial public offerings in Hong Kong in 2010 and into 2011, including international names such as skincare products retailer L'Occitane International and Italian fashion house Prada.

Founded in a loft in Manhattan in 1941, Coach has grown into a multibillion-dollar company, building its business on the success of its Coach handbags that for many years were widely coveted by wealthy women shoppers around the world.

Last month, Coach risked the ire of Wall Street and social media by announcing a change of its corporate name to Tapestry, as it evolves into a multi-brand upscale retailer.

Coach has lost some of its shine in recent years, hurt by the financial recession and increased online shopping.

The company is trying to regain its former glory by buying new brands, keeping a tight lid on discounting and pulling back from department stores.

REUTERS

A version of this article appeared in the print edition of The Straits Times on November 02, 2017, with the headline 'After Glencore, Coach also set to exit HK stock market'. Print Edition | Subscribe