Japan's Onward Holdings to Pull Out of S. Korea
Tokyo, Oct. 7 (Jiji Press)--Japanese apparel maker Onward Holdings Co. <8016> said Monday that it is pulling out of South Korea, after the rise of anti-Japanese sentiment from strained bilateral ties led to sluggish sales in the country.
Onward Holdings, which mainly sells golf apparel in South Korea, will shutter stores of its 23ku Golf brand by February 2020 and dissolve its local subsidiary, the company said at its financial results briefing.
The withdrawal from South Korea follows a major structural reform plan announced Friday, which included closures of some 600 domestic and international stores that are not turning profits.
The apparel maker said that it will also let go of its unprofitable brands such as Field Dream, sold at shopping centers in 15 domestic locations, and the Opening Ceremony specialty store at one location in Japan.
Onward Holdings is known for women's apparel brands such as 23ku and Kumikyoku, as well as menswear brands such as Gotairiku. It has been struggling to draw in young customers, and seen slow sales at its mainstay branches in department stores.
[Copyright The Jiji Press, Ltd.]