The move aims to improve the US unit’s financial structure, which has been pressured by the intensifying competition in North America, the holding company said.“We plan to reshuffle sales channels after reducing the US business for now and seek to re-enter the market,” said a Fila Holdings official in Seoul.“The North American business restructuring is expected to improve the group’s overall financial structure.”Fila USA was estimated to have logged operating losses of 142 billion won ($102.4 million) last year and 66 billion won in 2022, respectively, according to SK Securities Co., a South Korean brokerage house.
South Korean-owned sportswear brand Fila said on Tuesday it scaled back the loss-making US business to improve earnings through a restructuring in North America.Fila Holdings Corp.said it closed on Monday some operations of Fila USA Inc., which generated sales of $220.6 million last year, or about 6.5% of the group’s total revenue, in a filing to the South Korean financial regulator.
Fila Holdings Chairman Yoon Yoon Soo acquired the brand established in Italy when he led its South Korean operations in 2003.
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