Let’s talk about the impact of the COVID-19 pandemic on the Fashion industry and the measures they’re taking to stay afloat in the midst of the pandemic.
The global spread of the coronavirus is continuously rising and impacting the fashion industry with roughly millions of cases and hundreds of thousand deaths across the world. Currently, the United States of America has the highest number of cases worldwide with over 1.2 million confirmed cases.
With the continuous increase in numbers, many borders and countries are observing safety measures to contain the virus and later on halt the spread of it.
We cannot deny the fact that due to this pandemic, a lot of fashion brands are experiencing a massive negative impact on their operations and profitability, causing brands and design houses to close down, stop their production, and even postpone major fashion events like the Met Gala and the CFDA Awards.
We have listed down some of the fashion brands that have been greatly affected by the pandemic, which leads them to halt or shut its doors not only to their customers but for their workers, as well.
The British retailer with 142 stores based in the United Kingdom is seeking bankruptcy protection amid the COVID-19 pandemic. With the current situation, all of their stores are closed down and they are also planning to put its Irish business into liquidation.
Though they are doing something to fight the spread of coronavirus by producing hand gels and sanitizers. The beauty brand, Estee Lauder is cutting salaries for many of its senior executives up to 30% which will occur between May 1 and October 31. This measure is done to make the company afloat in the midst of the Pandemic.
Headquartered in San Francisco California. The American clothing retailer, Everlane cuts per 200 workers due to the pressure of COVID-19. This includes retails associates, and employees performing backend tasks for the company.
The company behind the fashion brands Old Navy, Gap, and the Banana Republic is granting leave of absence to 80,000 store workers due to the pandemic.
The giant luxury brand Gucci announced on March 12 that it will close its six Italian production sites until March 20 as a precautionary measure. However, in a statement, the company guarantees that it won’t affect the supply of products to customers
J. Crew Group Inc.
On May 4, struggling with huge debt and difficulties at the J. Crew brand, J. Crew Group Inc. has filed for Chapter 11 bankruptcy protection. Under the terms of the transaction support agreement, the company’s lenders will convert about $1.65 billion of the retailer’s debt into equity.
In the same manner, due to falling sales and online revenue amid the COVID-19 crisis, John Varvatos filed for Chapter 11 bankruptcy protection on May 6.
Apart from cutting the company CEO’s salary by 50%, the fashion brand is furloughing about 4000 employees due to store closure.
Macy’s already closed down all of its stores on March 18, with that the company has decided to furlough the majority of its employees due to the pandemic crisis.
Aside from furloughing employees, the Dallas-based retailer has officially filed for bankruptcy to protect the longevity of Neiman Marcus amid the COVID-19 pandemic.
Due to the COVID-19 Pandemic, Nordstrom is permanently closing 16 of its full-line department stores this year.
Ralph Lauren is temporarily furloughing retail employees and a portion of corporate executives until June 1. This is apart from the salary cut of its CEO and the designer himself.
The designer has laid off the brand’s wholesale employees.
The company’s leadership team has reduced its base salaries and has furloughed some employees
Sephora has laid off some of its part-time and seasonal employees. The news comes after the beauty retailer closed its doors on March 17 because of the virus.
Urban Outfitters is furloughing its employees due to the virus beginning on April 1 for a period of 60 days. The employees, which include in-store, wholesale, and office associates, are still eligible for company benefits. The retailer also closed its doors globally on March 14 because of the pandemic.
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