Fila, a South Korean-owned sports apparel and retail brand, is downsizing its U.S. operations and will lay off 130 employees starting this month at its headquarters and warehouse locations in Maryland, according to notices filed with the state.

The company blamed “a sustained unfavorable business environment, including intensified market competition.”

Founded by two brothers in 1911 in Biella, Italy, Fila rose to fame in the 1970s for bringing fashion to the tennis court. Decades later, in 2007, its former Korean subsidiary acquired the original company, Fila Holdings Corp.

Fila Holdings, which is the parent company of Fila USA, said it expected North American sales to decline and would reorganize and downsize part of its regional operations, according to a November corporate disclosure filing in South Korea.

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The company plans to cut 18 jobs at its Curtis Bay warehouse and 112 at its headquarters in Towson, according to a notice filed Wednesday with the Maryland Department of Labor.

Ben Marchman, a spokesperson for Fila Holdings, said the company “carefully evaluated the need to significantly enhance the group’s financial performance, structure, and overall resilience.”

The company also plans to lay off 98 employees in New York City starting next month, according to a notice filed with the New York State Department of Labor.

Fila USA had about 450 employees in Maryland in 2003, but that number fell to around 157 in 2018, according to previous reporting by The Baltimore Sun.

While Fila Holdings is slashing workforce numbers now, according to the November filing, it plans to reengage the North American market after establishing a mid- to long-term plan. The company is nearly three years into its five-year strategic plan, known as “Winning Together,” which was announced in 2022.

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The plan includes a rebrand to become a “premium lifestyle sports brand” by tapping into its Italian roots, focusing on sustainability and expanding its influence in other sports, including water sports, motorsports, running and soccer.

Fila’s target market would be young millennials and Gen Z, adults who have an interest in personal style, social media and pop culture, the company said.