Japan'S Luke Company Shut Down Four Brands

In view of the poor sales situation of clothing brands for department stores, Luke recently decided to suspend production of 4 brands by the end of the year.

Along with this adjustment, Luke company will lay off 150 people. The way of layoffs will be carried out voluntarily by formal employees and compensated by enterprises.

At the beginning of this year, a new round of three - year medium-term plan was set up in the beginning of this year. The company's sales revenue reached 2010 yen in the year of 2010, and its sales profit reached 1 billion 200 million yen.

However, the sales performance in the first year is much lower than originally expected, and the 2008 year sales revenue has been reduced and the loss has been formed.

In order to change this situation, the company decided to make a big adjustment to the business structure of enterprises, stop the production and sale of 4 middle-aged and old women's clothing brands for department stores, and cut down labor costs through layoffs.

The company expects to save 1 billion 500 million yen per year through layoffs.

Through these reforms, the company can concentrate its resources on the operation of brands that perform well in the market.

In view of the poor performance of the 4 brands, such as "MJ", "Xia Lei Pu Lan", "Kirby" and "Babbitt", the company has stopped production since the first half of this year.

The company said that because the profit margins of the brands are relatively low, the sales revenue will affect the overall sales revenue of the company, but it has little impact on sales profits.