G-III Apparel Group will close all 110 Wilsons Leather and 89 G.H. Bass stores, as part of a restructuring effort that will result in the company putting more emphasis on its wholesale operations. The retailer’s 41 DKNY and 13 Karl Lagerfeld Paris stores, as well as the e-Commerce businesses of all its brands, will remain in operation.
The liquidation sales will begin as soon as the stores reopen, and will be followed by early termination of their leases. “We believe that this restructuring plan will enable us to greatly reduce our retail losses and to ultimately have this segment become profitable,” said Morris Goldfarb, Chairman and CEO of G-III in a statement. “I am appreciative of all members of the retail team for their hard work and dedication over the years.”
The closures were announced alongside poor Q1 2020 results: net sales for the quarter fell 36.1% to $405.1 million, resulting in a net loss of $39.3 million. Additional expenses incurred included a $1.4 million payment on G-III’s 2016 acquisition of Donna Karan and a $3.2 million loss due to lease terminations.
Additionally, the restructuring effort is expected to incur an aggregate charge of approximately $100 million during Q2 2020, related to landlord termination fees, severance costs, store liquidation and closing costs and other fees.
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