Offshoring to India is not enough. Tough times for Sioux indeed. The group, which relocated its manufacturing activity from Portugal to less expensive India, last year, is now dealing with current difficulties. Their marketing and sales unit has recently filed, before the District Court of Offenbach, an application for self-management financial restructuring.
Offshoring to India is not enough
“At present, a vast majority of our commercial partners are closing down: we have to cope with that. Hence, looking at our marketing network, we expect sales to decrease by 30% this year”, announced Lewin Berner, managing director of Sioux and Chief Executive Officer of Sioux group. The group, headquartered in Walheim, split its own business into six independent companies, which deal, on their own, with collection design and development, shipping and logistics. Sioux Gmbh, founded 66 years ago, which handles product commercial management, is the one facing financial crisis: the other five companies of the group, instead, are not involved in the process.
The financial crisis currently hitting some German retailers, including, among others, Galeria Karstadt Kaufhof and Dielmann, a footwear chain, has been consequently affecting Sioux Gmbh. Berner fears such negative trend will even speed up in the second half of 2020. Although Sioux Gmbh are going to keep running regularly, they will implement a financial and operational restructuring plan.
Buyers have uncertainty
“To the best of our knowledge, over the long-lasting history of our corporation buyers never had such a high degree of uncertainty”, commented Berner in a press release. According to the Chief Executive Officer, the reopening of selling stores was not as beneficial as expected, whereas direct management e-commerce is enjoying a boost. Berner himself is feeling confident and positive about Sioux group, which is going to carry on with the implementation of the previously set strategy, mostly focused on digital experience: “We have a strong brand and quality products. Hence, we are a reliable partner”.
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