Hong Kong fashion brand Shanghai Tang has been sold to Italian entrepreneur Alessandro Bastagli and Hong Kong-based consumer-focused private equity fund Cassia Investments. Shanghai Tang’s owner Richemont Group sold the brand on June 30. Shanghai Tang was founded by Hong Kong businessman David Tang in 1994 in Hong Kong. Swiss luxury group Richemont took a controlling stake in 1998, and acquired full ownership in 2008. The brand’s new owners said in a statement that they were hoping to expand into new markets in Asia, Europe, the Middle East and North America. Shanghai Tang has 32 boutiques, primarily in Asia, but also has a presence in London and Miami. Bastagli is owner of Italian fashion producer A Moda and textile maker Lineapiù. The Richemont group saw its operating profit fall by 14% for the 12 months to March 31 this year. “The disposal of Shanghai Tang is a logical step,” Rene Weber, Analyst at Vontobel said. Neither Richemont nor Cassia Investments disclosed how much the deal was worth.