Bauhaus set to close 10 loss-making storesBusiness | Reuters and Winnie Lee 21 Feb 2020
Local apparel retailer Bauhaus International (0483) announced plans to close as many as 10 loss-making retail stores due to the unprecedented operating environment in Hong Kong caused by the Covid-19 outbreak.
The company expects around 100 employees will be made redundant as a result of the store closures. Bauhaus also anticipated recording one-off write-off or impairment losses amounting to between HK$16 million to HK$50 million.
Another retailer, Dickson Concept (0113), announced a 40 percent cut to staff's pay for three months as fashion, beauty and accessories sales recently declined by 77 percent. All executive directors will see their salaries cut by 70 percent, with other employees salaries adjusted by 10 to 30 percent from March.
Meanwhile, Dream Cruises announced the suspension of its Genting Dream operations from Singapore from this Sunday until March 27.
Still in company news, Taiwan's Foxconn said the outbreak will lead to lower annual revenue and they would cautiously resume output at its previously-closed mainland factories. Foxconn said its factories in Vietnam, India, and Mexico were continuing to be operate and expansion plans were underway.
Also, mainland sportswear maker 361 Degrees International (1361) expects the first half of its financial performance to be affected by the epidemic. It said factories and offices had resumed all operations since February 10.
And IMAX China (1970) said the outbreak will have a material impact on its first-quarter result. The company's net profit for 2019 grew 0.3 percent to US$42.89 million.