TOKYO — French handbag company Lancel will shutter its operations in Japan, bringing an abrupt end to its joint venture with Sumitomo Corp.
A spokeswoman for Sumitomo declined to give sales figures but said the French brand’s business failed to meet expectations. She said market factors such as the international economic crisis and the March 11 earthquake and tsunami hit Lancel’s performance.
Lancel is part of Compagnie Financière Richemont SA’s portfolio of brands.
Lancel Japan, a joint venture between Sumitomo and Richemont Japan, was launched in 2008 and currently operates seven stores across the country, including both freestanding boutiques and corners in department stores. The company hopes to close all of these, as well as its wholesale business, between late August and late September, the spokeswoman said. It will be liquidated by the end of the year.
Back in September 2008 when the companies formed their joint venture, Sumitomo and Lancel said they planned to open 40 to 50 Lancel stores over the next five years. The companies said they were targeting sales of more than 10 billion yen, or about $111 million at exchange rates of that time.