Peak closes 125 stores in Q1

Peak Sport Products Co Ltd closed 125 stores during the first quarter of this year as part of a strategic adjustment that started last year.

The high profile Chinese sports products company said it would close some stores to save costs and reduce its inventory, as well as adding to its investment in its online business.

Peak is not the only Chinese sportswear company that has suffered from a cash shortage and high stock levels.

361 Degrees International Ltd closed 96 retail branches during the fourth quarter of last year.

Last year, Li-Ning issued a profit warning and replaced its chief executive officer of 20 years, putting its founder back in control.

HSBC Holdings Plc estimated Li-Ning had excess inventory worth about 1.65 billion yuan ($259 million) that could take 11 months to clear. It said Anta's was worth about 3.12 billion yuan and was expected to take about 10 months to clear.

Industry experts attributed the high inventory to over expansion of the whole industry since the 2008 Beijing Olympics.