Wolford undertakes further restructuring
The management board of hosiery brand Wolford has announced plans to implement further cost cutting measures following a 9% decline in revenues in the financial year ended February 2019.
The company is undertaking “comprehensive restructuring measures” in a bid to lower costs and become profitable again. It said these steps will potentially help it save more than 10 million euros ($11.3m), moving closer towards its goal of returning to profitability in the financial year 2020/21.
The troubled Austrian brand is also in talks with creditors to ensure it has enough funds to continue operating, a statement released on Tuesday announced.
The plan also involves a strategy to drive sales in Asia following a recent partnership with China’s Fosun Fashion Group. On Monday, Wolford said it had partnered with Fosun Fashion Brand Management Company, a subsidiary of Fosun Fashion Group, to manage the brand’s wholesale, retail and e-commerce in China.
The ultimate goal is to make China a core market for the business, taking advantage of the country’s growing luxury market to generate revenues equivalent to around 10% of Wolford’s global sales. The US and Germany are currently the company’s largest markets.
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