Spanish fashion retailer to Liquidate 450 US Outlets

Spanish fashion retailer to Liquidate 450 US Outlets

Spanish Fashion retailer Mango has announced plans to close down 450 sales outlets in the United States. The decision came after the expiration of the five-year deal the company had with the retail store J.C. Penney to display its clothing lines at the latters department stores.

Mango battles with Inditex brands like Zara and Sweden’s H&M. A company spokesman said it won’t be restoring the deal with J.C. Penney and will close the outlets around February 2016. Mango will regardless have seven stores in the United States, involving ones in New York and Miami, and it plans to focus more on key urban groups in similarly popular cities.

The closing down of these sales outlets are not expected to create a major effect on Mango’s income, as the JC Penney outlets only brought 0.5 percent of its overall worldwide sales, the representative said. J.C. Penney declared a lower-than-expected misfortune for the second quarter, however the retail chain has struggled in last few years, and itĀ desertedĀ its try to go upscale in 2013.

Mango has stores in about than 100 countries. Its yearly revenue fell 11 percent in 2014 in the wake of placing assets into a global expansion strategy.

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