COUNTRY Road, the Australian clothing retailer that became synonymous with affordable, casual yuppie style in the 80s, faces the closure of 13 unprofitable stores after the worst loss in its 19-year history.
But in an effort to recoup lost profits it is planning to open combined homeware and clothing stores in Hong Kong and Singapore, in joint ventures with local partners in an effort to minimise the risks.
Country Road's marketing manager, Rob Williams said an announcement of how many of these stores will open is likely by the end of the month.
''We have the product, we want someone with the local knowledge.'' The Asian expansion, on the drawing board for the past year, will form part of a reorganisation following Country Road's A$29.1 million (HK$148 million) loss for the year to August.
It will discontinue direct manufacturing and concentrate production on its contract factories, in particular in Hong Kong and China.
The plan to sell its clothing and homewares in what its co-founder, Stephen Bennett, calls ''the lucrative Asian markets'' would flow on from that.
Mr Williams said, ''we have an office in Hong Kong now and there is a lot of disposable income in Asia currently.'' Country Road began in 1974, started by Mr Bennett, who is now president of Country Road International, and his sister Jane Parker, as a women's shirt manufacturer.