The encyclopedia · Strategy & Leadership · Strategic decision · 2026
Yeonsung Apparel closed after 28 years — ₩140B revenue collapsed to ₩39B
Yeonsung Apparel ran casual brand Clyde & and GGPX; revenue peaked at ₩140.7B in 2017 and collapsed to ₩39.1B by 2024; it closed operations in Apr 2026
Yeonsung Apparel · 2026-04-30
What happened
Yeonsung Apparel was founded in March 1998 as a Korean fashion company operating multiple casual and women's wear brands, including Clyde & (its flagship casual brand), GGPX (지지피엑스, women's wear), Top Girl, Chebignon, and Romane Conti. It grew steadily for two decades, reaching a peak revenue of 140.7 billion won in 2017.
From 2017 onward revenue declined every year as the traditional casual wear market in Korea shrank. Sales fell to 97.7 billion won in 2019, 75.8 billion in 2020, and continued dropping through the pandemic and recovery. By 2024 revenue had fallen to 39.1 billion won — a 72% decline from the peak. The company sold its headquarters building in Gangnam in 2019 to raise cash but could not reverse the trend.
A renewal of the Clyde & brand and store efficiency efforts in 2022 failed to stop the decline. In January 2026 Yeonsung Apparel announced it would end operations by April 2026 and requested franchise stores to complete closure by June 2026. Most headquarters staff had already stopped reporting to work.
Why it happened
- The traditional Korean casual wear market shrank structurally as consumers shifted to SPA brands, online shopping, and athleisure
- Revenue declined for seven consecutive years from the 2017 peak, a long-term erosion that cost-cutting and brand renewal could not reverse
- The company sold its Gangnam headquarters in 2019 to stay afloat, but that only bought a few years — no fundamental turnaround was achieved
- A 2022 brand renewal of Clyde & and store rationalisation did not attract enough younger customers to offset the loss of the existing customer base
The lesson
A brand that built its business on a shrinking channel — traditional casual wear in department stores — needs a new channel before the old one dies, not after.
Aftermath
Yeonsung Apparel ended operations in April 2026 after 28 years in business. Franchise stores were asked to close by June 2026. The company's brands — Clyde &, GGPX, Top Girl, Chebignon, and Romane Conti — were all discontinued or transferred. The headquarters in Seoul ceased operations and most staff left by early 2026.
Sources
- '30 years of history' fashion company Yeonsung Apparel, finally closes — Daum
- Yeonsung Apparel to close after 28 years — Financial News
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