Calvin Klein and Tommy Hilfiger parent company to close all Heritage Brands outlet stores, CNN Business reported.
New York-based PVH Corp. said a total of 162 Heritage Brands stores, including clothing lines Van Heusen, IZOD, Warner’s and Olga, are expected to close by the middle of next year.
PVH also announced its intention to cut 12% of its workforce, around 450 jobs, at its Calvin Klein, Tommy Hilfiger and Heritage Brands stores. The move is expected to save the company, which has 40,000 employees, $ 80 million per year.
âWe have not taken these decisions lightly, as our Heritage Brands Retail business is our oldest retail business but no longer responds to the appropriate return actions,â said Manny Chirico, CEO of PVH, in a statement. communicated.
The announcement follows PVH’s report last month that revenue fell 43% to $ 1.34 billion in the three months ending in May. Stores have been closed for an average of six weeks due to COVID-19.
âWhile these decisions are always difficult, they are strategically important to the long-term health of PVH,â Stefan Larsson, president of PVH, said in a statement. âThe COVID-19 crisis is dramatically reshaping the retail landscape in ways that we believe will be long-term in nature and far-reaching in terms of consumer buying behavior. “
The number of US retailers filing for bankruptcy continues to rise. The list includes giants such as J.Crew, JCPenney, and Neiman Marcus. Two weeks ago, a Seattle-based high-end kitchen retailer On the table filed for bankruptcy under a plan that could lead to its sale to affiliates of Fortress Investment Group.
The number of store and shopping center closures nationwide has raised the question of what will happen to the real estate they sit on.
In one example, developers are turning parts of a 41-year-old mall near Seattle into Avalon Alderwood Place, a 300-unit apartment complex with underground parking. The stores will still occupy 90,000 square feet of Avalon. But the development of the mall has focused on housing as the primary tenant, not retail.
âThis project is a great example of evolution in the shopping center industry,â said a spokesperson for Brookfield Properties, which owns the property and works with AvalonBay Communities Inc. on the residential component. âToday, people prefer to live in smaller spaces and want pedestrian amenities rather than relying on public transit. This project responds to these needs.