Pandora Considers Restructuring Its Struggling China Business Amid Sales Decline

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Danish jewelry giant Pandora is exploring options to restructure its operations in China after years of steep declines in both online and offline sales, according to sources familiar with the matter. The company is reportedly in talks with China-based investment funds and e-commerce partners about potentially licensing its brand and assets, including existing inventory, for a period of five years.

Pandora, the world’s largest jeweler by volume, has faced significant challenges in China, the world’s second-largest economy. Post-pandemic consumer slowdown, a widespread property market crisis, and intense competition from local, digitally savvy brands in the crowded e-commerce space have all taken a toll. Additionally, Chinese consumers have shown a growing preference for gold and higher-value jewelry over Pandora’s offerings.

In a statement to Reuters, Pandora acknowledged the need to reposition its brand in China and said it was working on a turnaround that “will take time.” The company reaffirmed its commitment to the Chinese market but did not comment directly on possible restructuring plans.

Financial filings reveal Pandora’s revenue in China fell nearly 80% to 416 million Danish crowns ($65 million) in 2024, down from 1.97 billion crowns in 2019. The country’s contribution to Pandora’s overall revenue shrank from about 11% to roughly 1% during that period. The business has seen considerable leadership turnover, with three managing directors since 2022. The current managing director, Thomas Knudsen, began in January, shortly before Pandora announced plans to close 50 stores in China this year.

Experts warn that finding a suitable partner or stakeholder for Pandora’s China business may be difficult given the ongoing market headwinds and weak performance. Jonathan Yan, a principal at consulting firm Roland Berger in Shanghai, said financial investors are unlikely to be interested, though e-commerce firms focused on higher-margin brand ownership might consider a deal.

The restructuring model being considered could resemble Gap’s 2022 sale of its China business to Baozun, a leading Chinese e-commerce partner, for $40 million to $50 million. The potential value of a Pandora deal remains unclear.

Sources indicate that Pandora’s e-commerce sales in China have declined more sharply than in physical stores. An acquisition by a local operator with expertise in Chinese e-commerce could offer a better chance at recovery, though any turnaround effort is expected to be costly.

Yan noted, “They will need to burn money and have a very innovative approach, and even then it won’t be easy.”

UK Police Arrest Four Suspects Over Cyberattacks on M&S, Co-op, and Harrods

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Four individuals under the age of 21 have been arrested in connection with cyberattacks that disrupted operations at major UK retailers Marks & Spencer (M&S), the Co-op, and Harrods, the National Crime Agency (NCA) announced on Thursday. The most severe incident occurred in April when a ransomware attack forced M&S to halt online clothing sales for nearly seven weeks, resulting in an estimated £300 million ($400 million) loss in operating profit.

The arrested suspects include three males aged 17, 19, and 19, and a 20-year-old woman. They were detained at their homes in the West Midlands and London. The NCA said they face allegations including offenses under the Computer Misuse Act, blackmail, money laundering, and involvement in organized crime. Authorities also seized their electronic devices, and the suspects are currently being questioned by the NCA’s National Cyber Crime Unit.

M&S Chairman Archie Norman revealed to lawmakers that the company had engaged with the U.S. FBI regarding the cyberattack. He suggested that loosely connected groups, possibly led by a hacking collective known as DragonForce, were behind the incidents. Norman also advocated for UK businesses to be legally mandated to report significant cyberattacks, noting that some major breaches recently went unreported.

M&S resumed online clothing orders on June 10 after a 46-day suspension, although click-and-collect services remain offline. CEO Stuart Machin expressed confidence that the company would be through the worst of the attack’s impact by August.

Romania arrests 13 in phishing scam targeting British tax office

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Thirteen individuals have been arrested in Romania following phishing attacks targeting the UK’s tax authority, HM Revenue & Customs (HMRC). The suspects are believed to have used stolen data to fraudulently claim millions of pounds in tax payments, HMRC announced on Thursday.

The arrests involved a coordinated effort with over 100 Romanian police officers, focusing on the southern counties of Ilfov, Giurgiu, and Calarasi. During the raids, authorities seized cash and luxury vehicles. The arrested individuals, aged between 23 and 53, face charges including computer fraud, money laundering, and illegal access to computer systems.

Additionally, a 38-year-old man was arrested in Preston, northwest England, on the same day. These actions follow HMRC’s disclosure last month that a criminal gang had stolen approximately £47 million ($63.7 million) by accessing over 100,000 customer accounts through phishing schemes and submitting false payment claims to the government.

HMRC emphasized that the fraud targeted the tax office rather than individual customers, though around 100,000 people were notified as a precaution. Criminal groups allegedly used the stolen data to file fraudulent claims for income tax, value-added tax (VAT), and child benefit repayments.

Simon Grunwell, operational lead of HMRC’s Fraud Investigation Service, said the agency has already taken steps to protect affected customers after detecting attempts to access a small portion of tax accounts.

Earlier, in November, two men were arrested in Bucharest as part of related cybercrime and fraud investigations linked to these phishing activities.