JAPAN: Fast opens and shuts subsidiaries

By just-style.com | 16 March 2006

Fast Retailing, which operates the Uniqlo casual clothing brand, has decided to set up a fully owned subsidiary to develop its new casual wear brand. The group also said it would liquidate its subsidiary National Standard.

The new company, which will concentrate on a cheaper brand of clothes, will be called G.U. Co. Ltd and will have capital of JPY450m (US$3.83m).

Fast is planning an operational launch of autumn for the brand, which will feature goods from underwear to outerwear and target customers from a wide range of ages.

Fast announced in January it would team up with retailer Daiei for G.U.

"We are aiming to make the subsidiary a true SPA firm that is involved in the
whole process of design through manufacture of a full range of garments from outer to inner wear," the company said.

"The casual wear brand should appeal to and attract a loyal customer across a wide age range spanning children through adults."

Fast does not expect any impact on consolidated results for the year ended August 2006.

Concerning the National Standard liquidation, the company said that it had made "considerable effort to firmly establish and expand the business base for its national standard ladies apparel brand", but that NS had not been able to meet growth targets.

Fast expects a special loss of about JPY6bn on a parent-only basis and JPY0.2bn on a consolidated basis.

Sectors: Apparel, Retail

Companies: Fast Retailing