PVH Corp., which owns Calvin Klein and Tommy Hilfiger, blamed the closings on the “evolving North American retail landscape, which has been accelerated by the Covid-19 pandemic” in a company statement released Tuesday by the night.
“We do not make these decisions lightly, as our Heritage Brands retail business is our oldest retail business, but it no longer met the appropriate return metrics,” PVH CEO Manny Chirico said in the statement.
The changes will also result in a 12% reduction in jobs, which equates to approximately 450 employees, and will save the company $ 80 million annually. The layoffs affect all three PVH retail companies, including Calvin Klein, Tommy Hilfiger and Heritage. Total, PVH (PVH) It has 40,000 employees.
Heritage stores commonly operate as Van Heusen and Izod Golf stores. She also owns the women’s lingerie brands Olga and Warner and the casual men’s brand Arrow. But the brands will not disappear: they will still be sold in department stores and warehouse clubs.
PVH is the last retailer to reevaluate its physical footprint due to the pandemic, which resulted in temporary closings. In June’s PVH first-quarter earnings report, he reported a 43% drop in revenue because his business was “significantly affected” by Covid-19.
The shift to working from home has also been detrimental to many companies that rely on office clothes. In the past two weeks, RTW Retailwinds, owner of New York & Co., and supplier of men’s suits Brooks Brothers have filed for bankruptcy.
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