Vida Shoes Announces Layoffs, Pay Cuts as COVID-19 Forces Restructuring
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Vida Shoes International will enter a corporate restructuring in direct response to the coronavirus pandemic, the company today announced.
Vida Shoes said it has laid off a portion of its staff as well as temporarily reduced pay for some employees. The corporation — which owns brands including Jambu, J Sport and Andre Assous and holds licenses to Stride Rite, Carter’s, Kensie, BCBGeneration and more — did not reveal how many workers are being impacted by the measures.
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“Understanding the reality that we are faced with, it became necessary to evaluate the ‘right size’ of the company that puts us in the best position for success during this time, and into the future,” said Vida president Solomon Dabah in a statement.
As it repositions itself, Vida Shoes says it plans to increase its focus on digital and e-commerce, with the aim of expanding its reach across different markets and touchpoints.
The coronavirus crisis has hit the fashion and retail sectors hard, forcing the temporary closure of nonessential brick-and-mortar locations and causing many persons to cut their discretionary spending. With stores shut because of the pandemic, scores of companies — including Nordstrom, Macy’s and Dick’s Sporting Goods — implemented a series of cost-cutting measures, such as decreasing executive pay, furloughing staff members and slashing operating expenses. Additionally, many retailers tapped revolving credit facilities in order to maintain liquidity with doors shut. What’s more, retail bankruptcies have been adding up in recent weeks, with J.Crew, JCPenney and Neiman Marcus Group among those to pull the trigger this month. Nonetheless, the U.S. economy appears to be showing some signs of rebound as states ease lockdown measures and other countries, such as Japan and the U.K., begin to reopen.
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