LONDON – Loss-making French Connection Group PLC said it would close its 21 stores in Japan over the next 6-9 months as part of ongoing efforts to tighten up the business and improve profitability.
The firm said it was looking for an appropriate licensee to operate the brand in the region.
The fashion retailer and wholesaler reported a loss of 11 million pounds, or $16.8 million, in the six months to July 31 on revenue of 116.9 million pounds, $178.8 million. Dollar figures have been calculated at average exchange rates for the period.
French Connection has been undergoing a strategic review, which resulted in the closure of its Northern European retail operations and layoffs in head office earlier this year. The company said last month it was planning further cuts in underperforming divisions and regions.
Its Japan business was forecast to generate a loss of 2.5 million pounds, or $4 million at current exchange, in the year to January 31. It said business will trade as usual in Japan until December 31, and thereafter will operate with a focus of clearing any excess inventory.