Jones Group Shutters 170 Stores, Cuts Workforce
Today The Jones Group, owner of Jones New York, Nine West and Anne Klein, announced a series of actions that will be taken in hopes of improving profitability. The retailer will reset its domestic retail business through the reduction of approximately 170 stores and cutting 8% of its workforce.
The actions will generate approximately $40 million in annual pretax savings by mix-2014. The company said today in a statement that the plan will result in costs of $40 million to $60 million in the next 15 months.
The plans for store closures are already underway and include 50 stores that were announced in the fourth quarter of 2012. Domestic retail staff will be reduced by approximately 18% and corporate, support and supply chain staff by 2%, for a total headcount reduction of 8% upon completion. About 850 jobs are being cut according Jones Group spokeswoman Sharon Stern. The staff reductions and termination notifications began April 1 and will continue through the first half of 2014.
For related content: