[Asia Economy Reporter Yujin Cho] Samsung C&T Fashion Division is restructuring by winding down the 'Beanpole Sports' brand business and promoting executive salary reductions.
On the 13th, Samsung C&T Fashion Division stated, "Due to the unprecedented management crisis caused by the COVID-19 pandemic, we are devising proactive business normalization measures to ensure future survival."
Samsung C&T Fashion Division plans to operate Beanpole Sports until February next year and then transition to an online business. About 100 Beanpole Sports stores and 50 Beanpole Accessories stores will operate only until February next year, and Beanpole Accessories will be sold through Samsung C&T Fashion Division’s integrated online mall SSF Shop and affiliated malls.
A Samsung C&T Fashion Division official said, "We will sell products only for this fall and winter season and then cease all business operations including store management. Through this, we aim to enhance the competitiveness of SSF Shop and increase the proportion of online sales to about 30% of total sales next year by improving service quality such as quick delivery and home fitting."
The winding down of the Beanpole Sports brand business is a self-help measure due to the deteriorated management situation caused by COVID-19. Beanpole Sports recorded annual sales of 100 billion KRW last year. Although specific operating profit figures have not been disclosed, it has been evaluated as not very profitable.
To reduce costs, executives will voluntarily return 10-15% of their salaries starting next month. Additionally, a four-day workweek will be temporarily implemented for all employees. From July to December, the four-day workweek will be in effect, and unpaid leave and study leave will be encouraged for those who wish. A temporary one-month unpaid leave system is also being implemented for those who wish until December this year.
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