Japan’s largest clothing retailer has revealed it is shutting down in a move aimed at cutting costs.
Shibuya Holdings has said it will cease trading on the mainland in December, after being forced to lay off around 2,000 employees.
Shiba’s, a leading retailer of high-end clothing and accessories, is closing more than 1,500 stores and reducing its workforce by 15% as part of the deal with rival Kogyo.
In addition to the closure, Shiba has cut its head count by about 1,000, and said it plans to lay-off another 20% of its workforce in the next 12 months.
The company said it planned to invest in a new brand, a new product line and a new manufacturing plant.
Shibas website said it would also invest in technology to increase efficiency, speed production and reduce costs.
Shiba’s chief executive, Kazuo Kojima, said in a statement that the company’s new plan would save the company “millions” and that it was confident it could continue to achieve its goal of profitability in the future.
According to Reuters, the company will continue operating in Japan through 2018.
Last week, the Japanese government announced a plan to limit the number of people allowed to work in the country, as part, to stem a rise in air pollution.
Kogyo, which has a market capitalisation of $1.1 billion, is one of Japan’s most influential and profitable clothing retailers.
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Image: Flickr, Shibuha Holdings.