The CEO of a massive clothing brand has now resigned during the company’s ‘transformation program’ meant to boost profitability.
Vince Holding Corp. CEO Jack Schwefel resigned his position effective immediately, according to a press release.
The company designs, merchandises, and sells luxury apparel and accessories in the United States and internationally.
It operates through three segments: Vince Wholesale, Vince Direct-to-Consumer, and Rebecca Taylor and Parker.
Vince’s board of directors appointed David Stefko, a board member and former Vince CFO, to hold the position in an interim capacity until a successor is named.
The company has initiated a search process to identify the next CEO, per the release.
The news comes as Vince is undergoing a transformation program meant to boost its profitability and create $30 million in savings over the next three years, reports Fashion Dive.
Stefko has held the interim CEO position once before, from August 2020 to March 2021, prior to Schwefel’s appointment.
Michael Mardy, chairman of the board of directors for Vince, said in the release that the board wished Schwefel the best “as he pursues other opportunities.”
“We are committed to finding a leader who has the skills and vision to continue to keep Vince on its trajectory to achieve its long-term objectives,” Mardy said.
“Through his experience as CFO and as a member of our Board, Dave brings significant understanding of the Company and is well-respected across the organization.
Having previously served as Interim CEO during a time of prior transition and amidst the volatility of the Covid-19 pandemic, the Board is confident in Dave’s ability to lead the organization during this period.”
Vince is set to report its full year financial results in late April 2024, and the company noted in the release that it “remains on track with its profitability objectives” for the year.
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Also Read: A Massive Mall Retailer Is Now Closing in California
Other Economy News Today
A massive essential retailer is now closing 160 locations to accelerate profitability, including recent rightsizing of their cost structure.
Walgreens announced that it will be closing several of its majority-owned Village MD, which operates in tandem with the pharmacy and offers both virtual and in-person primary care support.
Walgreens CEO Tim Wentworth told analysts that it’s working with Village MD to take “actions to accelerate profitability, including recent rightsizing of their cost structure, optimizing their clinic footprint, and growing patient panels,” during the Q2 2024 earnings call on Thursday.
He added that this will mean consolidation of some under performing locations.
“As Village prioritizes density in their highest opportunity markets, they decided in January to exit a total of approximately 160 clinics, inclusive of the 60 that had been previously communicated. As of today, they have already exited 140 locations,” Wentworth continued.
While Walgreens maintains Village MD is working to put the service right-side-up, it’s not yet seeing a turn of profit that it may have originally anticipated.
“GAAP net loss for the second quarter included a $5.8 billion noncash impairment charge related to VillageMD goodwill,” CFO Manmohan Mahajan said on the earnings call, adding, “In February, we received a downward revised longer-term forecast from VillageMD management.”
Still, Mahajan doesn’t foresee the charges as having an significant impact on our financial position or our ability to invest across businesses going forward,” adding that, “During the first half of fiscal ‘24, we have seen positive financial impacts from the recent actions taken by VillageMD management team to accelerate profitability.“
Village MD operates approximately 600 locations, with Walgreens operating about 200 full-sized locations alongside its pharmacy.
It owns about 60% of Village MD, perTheStreet.
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Also Read: A Home Improvement Retailer Now Closes All 157 Stores
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