Struggling fashion group Bauhaus has revealed it will shutter all stores outside of Hong Kong and Macau by the end of next March, in a move designed to refocus Bauhaus in its more profitable markets.
The business’ non-Hong Kong and Macau segment has recorded three years of consecutive losses, leading the total group from a $14.5 million profit in 2018 to an $18 million loss in 2020.
Bauhaus retails under several of its own labels – Tough, Jeansmith, Salad and 80/20 – across over 60 stores in Hong Kong, Macau and Taiwan. The company is also the franchisor for struggling British brand Superdry in Hong Kong.
The measures will see 14 stores shut in an “orderly” manner, as management teams in the respective regions negotiate with landlords to close stores promptly.
A total of 50 staff will be made redundant as part of the closures, on top of the several hundred staff cut during 2020 and 2019.
The business said it will subsequently re-focus on more “familiar” markets – a move the board believes can create a better economy of scope and is in the best interest of its shareholders.
The closures may result in further losses for Bauhaus, but it is not expected to have a significant adverse impact on its overall operations.