Women's underwear retailer Charle Co. announced it is withdrawing from the Chinese market due to sluggish sales amid intensifying competition with rival firms and tensions over the Senkaku Islands.
The Kobe-based company set up a sales subsidiary in Shanghai in 2005 to expand sales by opening shops in department stores, but it has been operating at a loss.
Charle said Thursday it will decide as soon as possible on the future of its Shanghai subsidiary, including its dissolution or sale.