Owner of Zara to close up to 1,200 stores in Asia and Europe

Inditex, one of the biggest fashion retailers in the world and owner of famous clothing brands such as Zara, Bershka, and Pull & Bear, plans to close up to 1,200 stores in Asia and Europe.

This move comes after the fashion empire has suffered from a 44% decline in sales.

They are now planning to shift their focus into online retailing during the COVID-19 pandemic.

According to The Guardian, the headcount of Inditex's workers will remain stable since their staff was offered other positions connected to online retail.

Inditex is not the only company in the fashion industry that was hit hard by the health crisis.

American retail company J. Crew filed for bankruptcy protection last month and has reached an agreement with its lenders to convert its estimated debt of $1.65 billion into equity.

Hopefully, the fashion industry will eventually recover from the crisis brought by COVID-19.

Sources:
https://www.linkedin.com/company/inditex/
https://www.theguardian.com/business/2020/jun/10/zara-owner-to-close-up-to-1200-fashion-stores-around-the-world?fbclid=IwAR2yKq1048xqdAs_xHvaLEmgFsMiuMxfxupLwZfu2CIHqdbDsI7JmDanCRY
https://www.businessinsider.com/retailers-filed-bankruptcy-liquidation-closing-stores-2020-2#j-crew-filed-for-chapter-11-bankruptcy-protection-on-may-4-the-company-now-plans-to-convert-165-billion-of-its-debt-into-equity-10
https://edition.cnn.com/2020/05/04/business/j-crew-bankruptcy/index.html

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