When Haining Mengnu Group Co. Ltd. acquired Jennifer Convertibles in a bankruptcy sale it gained a prize that many other Chinese companies also seek – a worldwide brand name, a legal blog says.
With a recognized brand name, a Chinese manufacturer can get much more for its products, compared to similar, Chinese-made merchandise sold under an unrecognized brand, the blog says.
“The Chinese government has been telling Chinese manufacturers for years that they need to start developing worldwide brands, but for the most part, Chinese manufacturers have not been doing this,” a China Law Blog item says. The item was posted Sunday.
Brand names are usually far too expensive for Chinese companies. But Haining Mengnu didn’t have to spend much cash because it was Jennifer’s biggest creditor; instead it settled that debt in exchange for 90 percent of Jennifer stock.
“Mengnu is now an integrated worldwide furniture company, with manufacturing in China and a retail and distribution network in the United States,” the blog item says.