(Filed Under Fashion News). Wacoal Holdings Corp., a designer, manufacturer and marketer of women's intimate apparel, announced it will terminate its Japan Wacoal Pesala Club business of their subsidiary Wacoal Corporation.
The decision was made at a board of directors meeting held on October 30th. Termination of the Pesala business is set to occur September 30, 2009. In a statement, Wacoal explains that "in terms of revenue, we continued to record operating losses from our Pesala Club business as opportunities for purchasing innerwear have diversified and potential risks associated with the business have increased following recent regulations on door-to-door sales. For this reason, after discussing the future of the Wacoal Pesala Club business, we determined that it would be difficult to continue the business and decided to exit from it."
Wacoal has been selling Japan-based Pesala brand innerwear since 1994 through a membership system called the Wacoal Pesala Club. According to the world federation of direct selling associations (WFDSA), the Pesala division made $30.8 billion in retail sales for 2007 in the U.S. and had 15,000,000 salespeople.
Regarding Wacoal's future prospects: "We expect to incur losses in connection with the partial business exit for each of the fiscal years ending March 31, 2009 and March 31, 2010. However, we believe that the effect on our consolidated business results for the fiscal year ending March 31, 2009 will be minor."
The company can be contacted in Japan at (075) 682-1027.
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