Pan Asia Footwear through shutting down or merging some of its inactive shoe-related subsidiaries to cut the number in half to 10 which will help reduce administrative and operating costs without resorting to layoffs.

Saha chairman Boonchai Chokwatana came in for four months to rescue Pan Asia, succeeding, who moved to another shoe subsidiary, Bangkok Rubber.

During the restructuring, Saha chairman Boonchai Chokwatana and his brother Narongare the important people. Pan Asia and Bangkok Rubber are now independent from each other. And that means that if one is not doing well, the other will still exist.

The main reason for Pan Asia's huge losses is its major clients including Nike, which used to represent 80% of shoe orders, shifted all of its business to China and Vietnam.

At present, the company's Pan brand generates only 5% of sales. The goal is to raise the proportion to 20%. Pan Asia expects sales of 3 billion baht this year, up by 30% from last year.

Until now the company has implemented a new policy of enlarging the variety of shoe products. In addition to its present line of athletic shoes, the Pan brand itself will begin offering running, golf and casual shoes. Distribution channels will also be widened to include the Saha network. At the same time the company will adopt a more modern look for its Pan shoes to attract more Thai customers.

It also launched All Marine multipurpose footwear, which can be worn while walking or diving. Pan Asia is plannin