Wilsons to axe jobs, close 160 stores
Struggling leather apparel, outerwear and accessories retailer Wilsons The Leather Experts Inc. has announced an extreme initiative of aggressive cost cutting measures and store closures in an attempt to turn round the company that has been suffering continued declines in sales in recent times.
The company plans to close up to 160 mall locations that do not fit in with its strategy while its remaining 100 stores in the mall division will be remodelled to a new "Studio" concept of brand-driven stores for women focusing on fashion accessories, which are expected to be complete by August this year.
The move will also lead to the loss of approximately 938 store-related positions and 64 positions at its corporate headquarters, overseas offices and distribution centre in Brooklyn Park, Minnesota.
"The decision to take these actions, while very difficult, is the right move for the future of Wilsons Leather," said Mike Searles, chief executive. "We expect the cost reduction initiative will enable us to reduce our working capital needs and strengthen our business, as well as provide capital for our remodel efforts to convert all remaining mall stores into our new "Studio" concept. Initial test results for the Accessories business in our new concept stores are very exciting and we look forward to rolling out this concept soon."
