Cosmetics Brand Shop The Saem to reorganize under Chapter 11 after just 1 year… What happened?

Uh-oh, this is probably not a good sign…


I’m not really interested in business, so I’ll just briefly summarize the article.

There has been a downturn in business, and The Saem has been downsizing. It has filed for Chapter 11 reorganization and has closed over 10 shops. Myeongdong Shop #1 was opened on August 19 last year, so it hasn’t even been a whole year.

Industry experts think that they lack proper understanding of brand shop’s nature and there are weak spots in organization and management.

Since its launch last year, it has established its image as a sale brand. But due to the internal instability, the number of sales has decreased, and the brand image has suffered as a result.

But an official from The Saem insists that they’re just trying to improve management efficiency and there are no other reasons for the Chapter 11 filing. The number of stores is actually increasing, and there’s no problem in the operations.

Source: edaily
Credit & English translation/summary:

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