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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.”

Nissan Eyes Foxconn EV Production to Prevent Oppama Plant Closure

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Japan’s Nissan Motor is reportedly in talks with Taiwan’s Foxconn to allow the electronics giant to manufacture electric vehicles (EVs) at Nissan’s Oppama plant in Yokosuka, south of Tokyo. This move could potentially save the factory from closure amid Nissan’s broad restructuring efforts.

Background:

Nissan CEO Ivan Espinosa announced plans to restructure the company, including closing seven out of 17 factories worldwide and cutting the workforce by roughly 15%. The Oppama plant, which employs about 3,900 workers, was among those considered for shutdown.

Potential Deal:

  • Allowing Foxconn to produce EVs at Oppama could help avoid the plant’s closure, preserving jobs and supporting local suppliers.

  • Foxconn is also reportedly considering acquiring a portion of the Oppama facility.

  • In May, Mitsubishi Motors, Nissan’s junior partner, signed a memorandum with a Foxconn subsidiary for Foxconn to supply an EV model.

Official Statements:

Nissan said the Nikkei report on the talks was not based on information officially released by the company. Foxconn did not respond to requests for comment.

UK’s Bytes Technology Shares Plunge 27% After Profit Warning on Restructuring Delays and Market Pressures

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Shares of Bytes Technology (BYIT.L), a UK-based IT firm, tumbled over 27% on Wednesday following a profit warning. The company announced that its operating profit for the first half of fiscal 2026 would be marginally lower than expected, citing delayed customer decisions and extended internal restructuring readjustments as key factors.

Bytes attributed the weak trading in the early months of the year to macroeconomic challenges, which led many corporate clients to defer purchasing decisions. The firm is transitioning from a generalist sales approach to specialized, customer segment-focused teams—a shift that has taken longer to implement than initially anticipated.

Additional pressure came from changes to Microsoft’s enterprise agreement program, which reduced certain transactional incentives. These changes particularly impacted the first half of the fiscal year due to a high volume of contract renewals in March and April.

On Wednesday, Bytes reported that gross profit for the first half of fiscal 2026 is expected to remain flat, contrasting with its May guidance, which projected double-digit gross profit growth and high single-digit operating profit growth for the year. For comparison, the company posted an operating profit of £35.6 million ($48.8 million) in the first half of fiscal 2025.

The stock dropped to 369 pence at one point—the lowest since April 2023—before recovering slightly to 391.4 pence by 08:00 GMT. Analysts from Jefferies noted that the cautious AGM update, which downgraded growth expectations, may have surprised investors.