The South Korean-owned Fila brand is downsizing its operations in the U.S. as it looks to cut costs.
The global athletic brand said in a Tuesday filing with to a South Korean financial regulator that it is undergoing a “reorganization and downsizing part of Fila’s North American operations to strengthen financial structure.” As of Monday, the brand has scaled back its wholesale and retail business in footwear and apparel in North America.
FN has reached out to Fila for a comment. The number of jobs impacted is not yet clear.
According to the filing, Fila U.S.A’s business has been impacted by headwinds in North America such as a difficult business environment and heightened competition. Fila said that it will seek to reengage in the region after it conducts a deep analysis of the market and stabilizes business there. Fila expects sales to decline in North America in the short term but anticipates a stronger financial structure in the region in the mid to long term.
Fila noted in the filing that its U.S.A operations brought in $220.6 million in revenues last year, making up about 6.5 percent of total revenue for the company.
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Earlier this year, Fila parent company Fila Holdings Corp. elevated Todd Klein to the role of global brand president one year after he assumed the Fila USA president role. In his new role, he assumed oversight for the operations of the Fila brand — including global product and marketing strategies — in addition to his existing responsibilities as Fila’s U.S.A president.
