HK court upholds CVC asset freeze over South Beauty founder
Friday, March 20, 2015
(AVCJ – Tim Burroughs) – A Hong Kong court has supported a move by CVC Capital Partners to freeze the assets of Lan Zhang, founder of Chinese restaurant chain South Beauty, which was bought by the private equity firm last year.
CVC is said to have paid around $300 million for a majority stake in South Beauty, with Zhang remaining a shareholder in the business and continuing to participate in strategic decisions. However, revenue has reportedly fallen dramatically since the acquisition.
