The business is planning on shutting its 162-outlet store Heritage Brands Retail business; however the stores are expected to stay open through to the middle of next year.
The Heritage Brands label includes Van Heusen, Izod, Arrow, Warner’s, Olga and Geoffrey Beene. Along with the closing of the brand, PVH has announced that it will also reduce its North American office workforce by approximately 450 positions, or 12 per cent.
These reductions will be made across all three brand businesses (Tommy Hilfiger, Calvin Klein and Heritage Brands) and corporate functions and are expected to result in annual cost savings of approximately $80M.
“The structural changes occurring in the North American retail landscape have required us to take a hard look at our North American operations and identify where we can optimise costs across our business model,” said Manny Chirico, Chairman and CEO, PVH. “As a result, we are making the incredibly difficult decisions to close our Heritage Brands Retail business and eliminate a significant number of positions throughout our North American organisation to align with the lower revenue base. We did not take these decisions lightly, as our Heritage Brands Retail business is our oldest retail business yet no longer met appropriate return metrics.”
“While these decisions are always challenging, they are strategically important for the long-term health of PVH, commented Stefan Larsson, President, PVH. “The 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 purchasing behaviour. We are adapting our businesses and rebalancing our cost base to improve our competitiveness and financial profile and, where appropriate, are reallocating resources to our businesses that drive greater returns.”
