The Jones Group, the company that makes clothing, shoes and fashion accessories for several brands, announced last week they are planning to cut the work force by 8 percent and close 170 retail locations, according to media reports and the company.
A story by the Reuters newswire said the retailer, which is behind brands such as Anne Klein, Stuart Weitzman and Nine West, said the company’s stock rose last week at news of the cuts.
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“We are focused on significantly improving margins in both the retail and wholesale channels and delivering outstanding products,” CEO Wesley R. Card said in a statement. “We remain focused on our mission to create the leading global fashion company defined by premier brands and driven by exceptional talent, and have achieved success in diversifying our portfolio from a category, geographic and distribution perspective.”
Jones Group, a New York company with business offices in Bristol Township, hopes to save tens of millions over the next year, the Assoicated Press reported.
In a press release, the company outlined the following steps to maintain profitability.
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Closing approximately 170 underperforming domestic retail stores by mid-2014. This plan is already underway and includes the 50 store closings announced in the fourth quarter of 2012. Upon completion, The Jones Group expects to operate a smaller and more productive chain of domestic stores, with outlet stores comprising a significantly higher percentage of the overall retail portfolio.
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Continuing critical assessment of individual store profitability on an ongoing basis, including consideration of converting certain stores to brands that offer the greatest opportunity for revenue growth and profitability.
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Optimizing the wholesale channel, with a focus on sportswear, through a more streamlined structure to support a brand-focused organization, including the consolidation of certain production, design and selling divisions, and consolidation of distribution and supply chain facilities.
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Reducing domestic retail staff by approximately 18 percent and corporate, support and supply chain staff by approximately 2 percent, for a total headcount reduction of approximately 8 percent upon completion. Retail staff reductions and termination notifications began this month and will continue through the first half of 2014.
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The company did not say whether staff at the Bristol Township office would be impacted.
Estee Lauder moved into a location in the Keystone Industrial Park in Bristol Township that was previously used by the Jones Group in 2011. Estee Lauder plans to expand the facility and add more jobs.
