Pandora is set to repurchase DKK 500 million ($74.7 million) of unsold inventory from retailers that stock its products, the company said.
The Danish jeweler believes this will reduce the quantity of goods its clients keep in stock for long periods. The company plans to smelt and recycle the old jewelry to make new collections, a company spokesperson told Rapaport News Tuesday. The venture, which it will implement in select global markets, is part of a wider restructuring plan that will cost Pandora up to DKK 1.5 billion ($224.3 million).
Other features of the plan include supplying retailers with fewer goods in a bid to prevent buildup of excess inventory. Pandora will instead replenish clients’ stock with in-demand items when necessary, rather than providing them with too much product up front.
Pandora has struggled with disappointing sales, leading to the departure of the company’s CEO last August, as well as 1,900 job cuts this year.
Last week, the company announced a new partnership with television and film star Millie Bobby Brown as part of its efforts to connect with a younger audience.