Hong Kong-headquartered apparel chain Bossini is to close down its Taiwan business, expecting to close all 51 stores by July 31.
Chairman Bess Tsin said Bossini Taiwan will start discussions with landlords over terms for exiting leases early and all employees made redundant will be compensated as required by local laws.
She expects the closure to result in one-off costs of HK$20 million (US$2.57 million), subject to the outcome of landlord negotiations.
Bossini Taiwan was launched in 1992, an early foray into the Greater China market for the brand.
“The decision to withdraw from the Taiwan market is a difficult one for the company,” said Tsin. “However, due to the continuing sluggish consumer market in Taiwan over the last two decades, Bossini Taiwan has been loss making since the 2005/06 financial year.”
Tsin said given the current challenging market conditions in Hong Kong and Mainland China, the board resolved yesterday that it was in the best interests of the company and its shareholders to cease the Taiwan operations and focus its resources on its other major markets.
Last month, Bossini revealed a loss of of HK$93.7 million (US$12 million) during the six months to December – more than triple the $25.7 million loss of the same period a year earlier. Sales were down 20 per cent to $699 million ($89.9 million).
“The company and the board would like to express their greatest gratitude to the management and staff of the Taiwan division for their unwavering support to the group in the past years,” she said in a stock exchange filing.