Le Saunda trims workforce in profitability drive
The Hong Kong-based loss making shoe retailer Le Saunda Holdings has shed 20% of its workforce, and is considering diversifying into other consumer products in order to regain profitability.
In an effort to cut excessive inventory, the company had reduced its annual output to below one million pairs and as of February, it had cut its inventory levels to $10.4 million from $22.8 million a year before. Price-cutting measures and strategic warehouse sales contributed to the sharp reduction.
The company will also increase outsourcing, further reducing the need to maintain a large number of workers. Chairman Jimmy Chan aims to revamp Le Saunda into a multi-brand operator. Mr Chan emphasised the drive to partnerships with foreign brands. At present, the company has 26 outlets in Hong Kong and 160 stores in the mainland, including self-operated businesses and franchises.
