Alibaba’s online retailer, Ayate, is set to close a deal to buy the wholesale clothing business of the UK-listed online retailer UK-China wholesale clothing.
The deal will see Alibaba take over Ayate’s online business, Ayatel, for an undisclosed sum.
The purchase is expected to close in the second half of this year.
The retailer had been in the process of closing its UK retail operation after the death of its founder, Peter Diamandis, in May 2018.
Mr Diamas family, who ran the online shopping and merchandising business in the UK, announced that he had passed away last year, less than two years after the company was founded.
Ayatels chief executive, John Raffaelli, said the acquisition was the result of a close strategic partnership between the two companies.
“Ayatel is the only wholesale clothing retailer in the world that focuses exclusively on selling the best quality, high-quality clothing to the UK market,” he said.
“Our combined experience and business vision of combining our strengths to deliver the best and fastest service to the market mean we are the perfect match for Alibaba.”
Ayateli has been operating in the United Kingdom since 2008 and its business is managed by British clothing retailer, Marks &Clothing (M&C).
“This acquisition will strengthen Ayatelin’s position in the market and allow us to provide a more efficient, efficient and flexible business model,” Mr Raffaielli said.
Mr Riffaelli said Ayateleas online business had experienced a surge in traffic and profits since the acquisition.
“We believe Ayatelo’s scale, the strength of our business model and its proven track record of delivering great quality products to our customers are a plus point in our partnership,” he added.
The acquisition is subject to regulatory approval.