Turnaround through franchising: Hong Kong-based apparel retailer is no paper Tiger. (Tiger Enterprises' financial recovery)

Daily News Record, June, 1995 by Bow, Josephine J.

Tiger Enterprises has made a financial recovery through its franchising efforts, but even this strategy has not been without problems. When retailer Giordano decided to create another branch to enter China's retail market, company officials decided against direct-retailing and established Tiger Enterprises. In 1993, Tiger posted a $9 million loss as the firm faced unexpected costs and bureaucratic obstacles, but posted a $2.5 million profit for 1994 through franchising.

HONG KONG -- When Tiger Enterprises, the China branch of Hong Kong-based casual apparel retailer Giordano, posted losses of nearly $9 million U.S. on sales of $39 million for 1993, its second year of operation on the mainland, tongues began wagging.

If even a tried-and-true retailing formula such...