Swedish clothier KappAhl backs out of Czech Republic
Continued assessment of stores and ongoing action programme were leading to the decision, that Swedish clothier chain KappAhl is closing down its five stores in the Czech Republic
The management of the company declared that the general market situation in the Czech Republic has deteriorated since KappAhl entry in 2009 leading to the fact that the stores could not meet profitability expectations. The exit is expected to have a marginal effect on the operating profit and should be completed before the end of 2013.
KappAhl maintains a stable platform of close to 400 stores and 4500 employees in four countries (Sweden, Norway, Finland and Poland) and management focus will be directed to the markets where KappAhl already has a well established network of stores and where work with the ongoing action programme is expected to have a greater impact.