K-Swiss, the sports fashion footwear brand, is to relocate its London head office and shut down some of its European marketing operations to cut costs.
K-Swiss confirmed this week it was looking to vacate its five-floor London office to move to another location but denied it would look for a smaller site.
It has also closed showrooms in Paris and Amsterdam, which it opened to help it devise local territory marketing strategies. Around five jobs have been lost. K-Swiss employs 80 people in Europe.
K-Swiss reported a net loss of $1 million (£662,970), against net earnings of $7.1m (£4.3m) for the first quarter ended March 31. International revenues, which include UK sales, decreased 24.3% to $43.6m (£26.4m).
K-Swiss European general manager Steve Hazell told Drapers: “When business is great you can afford to carry resources that you don’t use fully. The offices we are closing are the showrooms which were opened to connect the brand to opinion leaders in capital cities. In London we would like to move to a different building with more of an open-plan space.”
Sources told Drapers that K-Swiss had been hit by the administrations of UK chains such as Original Shoe Co. K-Swiss’ office in Manchester, opened just two months ago, will remain open, as will the K-Swiss satellite office in Somerset. Hazell said no changes had been made to the K-Swiss UK sales team structure.