After yet another annual report with large losses in the millions, the Danish design brand Jacob Jensen Design has chosen to close down in Asia, where the company has had offices in Shanghai in China and Bangkok in Thailand, writes Danish media Jyllands-Posten.
As a result of the closing, 15 employees in Asia and a few in Europe have been fired, the newspaper wrote on Saturday 14 July 2024.
The decision was approved at the annual shareholders meeting on 27 June 2024 when the shareholders approved the Management’s Business review. Here it says:
“Towards the end of 2023 the board decided to terminate its organization in Thailand as the business conditions were extremely difficult, and instead focus on the European market. The income statement for 2023 is therefore affected by provisions in connection with the termination.
The income statement for 2023 shows a loss of DKK 5,9 million against a loss of DKK 6,9 million.
“The board has decided to focus on European customers going forward. As a consequence, it has been decided to close the Bangkok branch office and eliminate certain management headcounts. This has resulted in one-time costs for among other severance payments and other closing costs in the income statement for 2023,” the statement continues.
“Going forward we will serve our Asian customers through partnerships. These decisions have resulted in a significantly lower cost run-rate that will take effect in second half of 2024 and continue into 2025. Jacob Jensen Holding A/S, who is the sole owner of the Company, and the ultimate shareholder, Kolind A/S, has continued to support the Company and the Group financially, and has pledged to do so also in the 2024 financial year.”
Effective from February 1, 2024, Martin Jacobsen has been the new CEO of Jacob Jensen Design, replacing Frank Jepsen.
