G-III Apparel management agrees to salary deductions

Goldfarb and Sammy Aaron, the vice chairman of the board and president, has agreed to receive no salary effective March 30. Wayne S Miller, the chief operating officer and secretary, Neal S Nackman, the chief financial officer, and Jeffrey Goldfarb, executive vice president and a member of the board of directors, each agreed to a 40 per cent reduction in their annual salaries.

At this time, the company’s wholesale business requires a smaller workforce to execute on the critical activities of its business. As a result, in addition to the above-mentioned salary reductions, the company will be furloughing approximately 60 per cent of its wholesale operations segment employees, effective April 6, 2020. All wholesale business furloughed employees will continue to receive existing healthcare benefits with the company paying the employees’ share of healthcare costs.

“Over the years, we have successfully managed through many challenges. What we are navigating through today is unprecedented and rapidly evolving. I am confident in the actions we are taking to strengthen our financial flexibility to position us for future success. The furlough of many of our employees was one of the most difficult decisions we have had to make as an organization and one we did not take lightly. We look forward to bringing our furloughed employees back to work as soon as possible,” said Morris Goldfarb, G-III’s chairman and chief executive officer.

In its owned retail business, the company has provided on going pay and benefits to store employees impacted by the temporary store closures. Given the rapidly evolving environment and stay-at-home orders by government officials across the country, the company, in addition to the above-mentioned salary reductions, will be decreasing the number of its retail segment employees by over 80 per cent through furloughs and staff reductions, effective April 6, 2020. All full-time retail business furloughed employees will continue to receive existing healthcare benefits with the company paying the employees’ share of healthcare costs.

G-III designs, sources and markets apparel and accessories under owned, licensed and private label brands. G-III’s owned brands include DKNY, Donna Karan, Vilebrequin, G H Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard. G- III has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi's and Dockers brands. G-III also operates retail stores under the DKNY, Wilsons Leather, GH Bass, Vilebrequin, Karl Lagerfeld Paris and Calvin Klein Performance names.

Fibre2Fashion News Desk (PC)