PARIS (Reuters). – The GLAS group, which holds bonds, has purchased 29% in French fashion firm SMCP. Maje and Sandro are its brands. It plans to then sell the stake. This could bring about a shift in ownership at SMCP.

After Shandong Ruyi’s unit defaulted upon some bonds, speculation about SMCP’s ownership resulted in GLAS moving into the company.

By 1000 GMT, shares in SMCP had increased by 2%

“SMCP reminds you that the situation doesn’t affect your company’s finances or operations. The company’s strategy is centered on creating value for the entire group, including shareholders, employees, and partners. SMCP and its team remain 100% committed to the implementation the One Journey Strategic Plan to 2025,” SMCP released a statement Friday.

SMCP said that GLAS bondholders would not only be looking to get rid of their 29% equity stake in SMCP but also to look at changing the board at SMCP.

Shandong Ruyi was once a 53% owner of SMCP. He had dreams of creating an empire to rival luxury company LVMH.

It began purchasing labels in 2015, a buying spree that would see it acquire London-based suitmaker Aquascutum, Savile Row tailor Gieves & Hawkes and Paris-based fashion house Cerruti 1881, but has struggled under the weight of debts resulting from those acquisitions.

Financial problems for the sprawling Chinese conglomerate were worsened by the COVID-19 epidemic in China. Last year, it was unable to get financing for $600 million purchase of Bally luxury Swiss footwear and accessories company.

SMCP’s fortunes contrast with Shandong Ruyi’s, who recently recovered from the coronavirus crises with 54.6% sales growth on an organic basis. This was due to Chinese demand for contemporary French fashions after a 24% drop in last year’s sales.

Isabelle Guichot has replaced Daniel Lalonde, longtime chief executive officer of SMCP. Shandong Ruyi bought the group from private equity firm KKR back in 2016.