Japanese eyewear retailer Aigan to exit China

The company said that Japanese eyeglasses seller Aigan will leave the Chinese market as the impact of the coronavirus dims its hopes for turning a profit.

Already weak earnings in China have been squeezed further by coronavirus-related disruptions that forced temporary store closures.

The Osaka-based company’s Chinese arm has lost money for seven straight years since 2015.

Aigan set up a China unit in 1994 and later expanded to six stores in Beijing and Tianjin, including franchisees.

Also, on Monday, the company projected a group net loss of 425 million yen ($3 million) for the fiscal year ending March 2023 — wider than the previously forecast 315 million yen. It cited losses related to liquidating the Chinese unit, estimating them at 110 million yen.