Jones Group to close 170 stores and cut 18% of retail staff
24/04/2013
The Jones Group will consolidation certain production, design and selling divisions, as well as distribution and supply chain facilities.
It said US-based retail staff will be reduced by about 18% and corporate, support and supply chain staff by 2%.
“These actions are expected to generate approximately $40 million in annualised pre-tax savings and reduction of operating losses by mid-2014, with the benefit to fiscal 2013 expected to total approximately $11 million,” said the group in a statement.
Jones CEO Wesley Card commented: "Given the impact it will have on our associates, our decision to streamline operations was difficult. However, we believe these actions will position the company for maximum operating leverage and improved profitability as our businesses recover and grow."
The group did not specify which shops would close.
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