Home / Knowledge / News / Apparel/Garments / Workforce reductions at Foothill Ranch-based fashion retailer
Workforce reductions at Foothill Ranch-based fashion retailer
28
Jan '08
The Wet Seal Inc announced that, as part of its strategic review of business operations, which includes various cost-cutting initiatives, the Company has implemented staff reductions affecting a total of 41 employees. In addition, the Company decided it will not fill ten currently vacant positions. Forty-nine positions were eliminated in the Company's corporate offices and two were eliminated in the field.

The staff reductions are expected to result in annualized pre-tax savings of approximately $4.3 million beginning in fiscal 2008. The Company expects to incur a one-time charge of approximately $0.4 million in its fiscal 2007 fourth quarter related to the elimination of these positions. Affected employees were provided with severance packages.

The Company also announced plans to reduce marketing expenditures by approximately $1.8 million in fiscal 2008, primarily by eliminating national print advertising programs deemed ineffective by management.

Assuming the Company's forecasted effective income tax rate of 3%, the Company estimates the described cost savings will benefit fiscal 2008 diluted earnings per share by approximately $0.06.

Ed Thomas, chief executive officer, commented, “As we have previously stated, the Company is undergoing a review of various business functions, with the goal of increasing profitability. We are in the early stages of implementation. Unfortunately, the review has identified the need to reduce our corporate workforce. We very much appreciate the contributions of the affected associates to the Company's past success and regret the need to take these actions.

“With this addressed, we have a corporate organization that is fully able to manage all of our responsibilities. We will continue with our initiatives to further improve merchandising and increase efficiencies throughout all functional areas. To that end, we continue to work diligently towards positioning the Company for sustained growth in the future.”

The Wet Seal Inc

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X