Parent company of Calvin Klein and Tommy Hilfiger will close all of its outlet stores Heritage Brands, 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 plans to cut 12% of its workforce, or about 450 positions, at its Calvin Klein, Tommy Hilfiger and Heritage Brands stores. This decision should allow the company, which has 40,000 employees, to save 80 million dollars a year.
“We did not make these decisions lightly, as our Heritage Brands Retail business is our oldest retail business, but no longer met appropriate performance metrics,” said PVH CEO Manny Chirico. in a press release.
the announcement comes on the heels of PVH’s report last month that said revenue fell 43% to $1.34 billion in the three months ending May. Stores have been closed for an average of six weeks due to COVID-19.
“While these decisions are always difficult, they are strategically important to the long-term health of PVH,” PVH Chairman Stefan Larsson said in a statement. “The COVID-19 crisis is radically 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 in a plan that could lead to its sale to affiliates of Fortress Investment Group.
The number of store and mall closures nationwide has raised questions about what will happen to the real estate they sit on.
In one example, developers are transforming 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 anchor tenants, not retail.
“This project is a great example of evolution in the shopping center industry,” said a spokesperson for Brookfield Properties, which owns the property and works with AvalonBay Communities Inc. on the residential side. “People today prefer to live in smaller spaces and want walkable developments rather than relying on public transit. This project meets those needs.