Danish jewellery brand Sif Jakobs is increasing its focus on its most profitable markets and reining back in countries that are delivering lower returns.
The UK has been identified as a key growth market, and is expected to benefit from the new approach. Germany is also listed as one of Sif Jakobs’ most successful core markets.
A subsidiary of Sif Jakobs Group, International Accessories, which worked mainly with retailers and distributors in non-core markets across the rest of Europe, has been shuttered as part of the restructuring.
A bankruptcy order to a Danish court was made on February 24 by the company itself, according to a document sent to the company’s creditors today.
International Accessories was owned 82% by S&S Holding ApS, the privately-owned parent group of the company’s founders Ms Sif Jakobs and CEO Søren Dahl. Around 10% of its turnover came from the UK and Ireland.
When the restructuring is complete, Sif Jakobs says it will be dedicating its capital and management to the part of the business that is most profitable.
“The Sif Jakobs Group has been growing rapidly all over Europe during the past couple of years. The Sif Jakobs Group now needs to consolidate and focus all capital and management on the healthy part of the business to grow in a sustainable manner. The markets we are concentrating on are UK & Ireland and Germany. This is good news for Sif Jakobs Jewellery retail partners in the UK and Ireland, as we will be much more focused on growing our business in the UK than we have been previously. The restructuring of the business means that Sif Jakobs Jewellery will be fitter, stronger and more able to cope with the demands of a fast growing jewellery brand than ever before,” Mr Dahl said in a statement to Professional Jeweller.
Mr Dahl says that the company has been growing by more than 40% over the past couple of years.
As part of the restructuring, Sif Jakobs Group (S&S Holdings) has acquired the best-performing parts of International Accessories. Some creditors will lose out in the process, but Mr Dahl says most will be paid.
“International Accessories only leaves a very few creditors uncovered. Sif Jakobs Group (S&S Holding) has bought the profitable part of the company and the transaction secures 80% of the creditor mass. 60% of the employees are secured by the transaction and have been transferred to the new company. Employees relating to the less profitable parts of the business have had their contracts terminated as part of the business consolidation.
The new trading company, which was created on February 28, is known as Sif Jakobs Jewellery.