A $6bn US-based electronic goods retailer that opened its doors in 2014 will be shuttered by the end of the year.
Key points:Cartier will close its doors after its 10-year deal with Authorised after Sales, the company announcedA “significant” number of its customers will be affectedThe company will not have an office in the US after allThe business, which has been a subsidiary of French retailer Cartier since 2009, has been hit hard by the collapse of the Chinese economy.
Its shares plunged by more than 30 per cent this week.
Cartier, a US subsidiary, had a long history of growing its business in the country, but its recent history has been dominated by high-profile legal cases.
In November, the Federal Court of Appeals ruled that the company was in breach of US antitrust laws, ruling that it had been using an unfair advantage to target American competitors with the aim of keeping its US operations in the United States.
“The Company is aware that it is a potential target for foreign competitors and is prepared to engage in an effective and appropriate response to address those issues,” the company said in a statement on Tuesday.
“Cartier is fully committed to working with the US Government to address these concerns and will continue to engage with its customers and US counterparts as appropriate.”
It added that the US “continues to be the preferred market for our business and we will continue our efforts to provide the best possible service to our customers.”
The US Justice Department, however, has said it would not be seeking to block the closure of Cartier in the eyes of the Federal Trade Commission (FTC).
“We do not have any plans to seek any remedy against the Company or its subsidiaries,” the department said in an emailed statement.
“We are not interested in seeking a ruling on the merits of the proposed proposed proposed merger.
As such, we are not prepared to pursue any remedy.”
The government has previously argued that it should not be required to consider any foreign government’s motives in pursuing the deal.
“It is the Department of Justice’s view that the FTC should not have to weigh in on whether the merger would have an adverse impact on the United Americans consumers or businesses,” the FTC said in November.
“That said, the FTC will continue its review of the merger proposal and will take any necessary action as warranted.”
Cartier was bought by Chinese company JCB in 2011, but has been struggling in recent years, with a loss of $20 million in its last three years.
The company said it will be laying off around 1,000 employees at its US headquarters in Dallas.
“In a recent quarterly financial statement, we announced that our net loss for the year ended March 31, 2019, was $9 million,” the statement read.
“However, we also noted that we achieved a profit in the fourth quarter of 2019 of $2.9 million, bringing our total net loss to $19.9m for the full year.”
The company also said it had reduced the size of its US stores from 1,100 to 500.