Michael Kors, Jimmy Choo and Versace stores to stay closed until June
Capri Holdings, the parent group of Versace, Jimmy Choo and Michael Kors, has announced that the 7,000 employees it has working in its stores in North America will go on furlough on April 11.
It said its retail stores in North America and Europe, which closed because of the Covid-19 outbreak in mid-March, will not reopen until June 1 at the earliest. The stores will only reopen then if it is safe for them to do so.
Chief executive, John Idol, said: “This is a very challenging time for our business. We do not take any of these measures lightly, particularly with respect to our employees who are the heart and soul of our company. We believe that these actions are necessary to enable us to overcome the burdens of this financial crisis.”
He said the group is “well-positioned” to continue to operate its business, has a strong balance sheet and strong relationships with vendors, suppliers and landlords. “We are optimistic that Capri will rebound and believe we have the financial resources to emerge a strong company,” he said.
Senior figures, including Mr Idol, Michael Kors, the chief creative officer of Michael Kors, Donatella Versace, the chief creative officer of Versace, and Sandra Choi, the chief creative officer of Jimmy Choo, have voluntarily elected to forgo their salary for Capri’s business year for 2021. Directors will receive 50% of their salaries and the group will “explore opportunities” to reduce salaries at various levels throughout the organisation by approximately 20%.
