Israeli fashion and homeware retail chain Golf & Co. Group (TASE: GOLF), controlled by Len Blavatnik's Clal Industries, is to implement an extensive streamlining plan to reduce the impact of the Israel-Hamas war, the company announced this morning.
In announcing its financial results for the third quarter of 2023, during which the war had no influence, Golf said it would be closing 20 stores and is conducting negotiations with the owners of existing assets to reduce rents.
Among other things, Golf's streamlining plan will include laying off 30% of the company's head office employees, a major reduction in its Adika fashion chain for young women and leaving its logistics center. In addition, Golf will act to reduce inventory orders from suppliers and adjust inventory procurement already ordered for the summer season.
Golf reported that revenue was down 67% in October following the outbreak of the war, but the sharp fall moderated in November when revenue was down 33% compared with November 2022. However, in December so far revenue is encouragingly up 5% from December 2022.
Published by Globes, Israel business news - en.globes.co.il - on December 25, 2023.
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