NEW YORK CITY — June 4, 2020 — G-III Apparel Group Ltd. today announced the restructuring of its retail operations segment.
The restructuring of the retail operations segment includes the closing of 110 Wilsons Leather and 89 G.H. Bass stores. The company has hired Hilco Global to assist in the liquidation of these stores, which will begin immediately or as stores reopen.
Morris Goldfarb, G-III’s chairman and CEO, said, “We have completed a comprehensive review of our retail operations segment. With a focus on enhancing shareholder value, we have made the difficult decision to close all of the Wilsons Leather and G. H. Bass stores and have entered into agreements for the early lease termination of a significant majority of these stores. We believe that this restructuring plan will enable us to greatly reduce our retail losses and to ultimately have this segment become profitable. I am appreciative of all members of the retail team for their hard work and dedication over the years.”
Goldfarb concluded: “Our wholesale business, anchored by our five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld, will continue to be the primary growth and profit engine for the company. We have a great base of business which we believe creates a strong foundation for our future.”
In connection with the restructuring of our retail operations, the company expects to incur an aggregate charge of approximately $100 million related to landlord termination fees, severance costs, store liquidation and closing costs, write-offs related to right-of-use assets and legal and professional fees. A significant portion of these charges will be incurred during its second fiscal quarter ending July 31, 2020. We expect the cash portion of this charge to be approximately $65 million.
After completion of the restructuring, the company’s retail operations segment will initially consist of 41 DKNY and 13 Karl Lagerfeld Paris stores, as well as the e-commerce sites for DKNY, Donna Karan, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass.
Posted June 4, 2020
Source: G-III Apparel Group Ltd.