A massive clothing retailer will now lay off 357 employees, including 200 at its corporate headquarters, sources report.
Outdoor recreation retailer REI is cutting its workforce for the third time in less than 12 months, reports RetailDive.
Recreational Equipment, Inc., doing business as REI, is an American retail and outdoor recreation services corporation.
It is organized as a consumers’ co-operative.
REI sells camping gear, hiking, climbing, cycling, water, running, fitness, snow, travel equipment, and men, women and kids clothing.
In a Thursday announcement from CEO Eric Artz that was shared with employees, the executive said 357 people will be laid off — 200 employees at its Sumner, Washington, headquarters, 121 in distribution centers and 36 in other roles, including experiences.
Non-headquarters store-specific roles are not affected by the layoffs, the company said.
Those being let go were notified in one-on-one conversations on Thursday, REI said.
Employees whose jobs were cut will receive separation benefits that include severance, continuation of health coverage, and outplacement support and services.
Last February, REI laid off 167 people at its corporate headquarters as part of a restructuring.
In October, the outdoor retailer cut 275 people in a store operations overhaul.
REI has about 16,000 employees and about 180 locations in the U.S., according to its website.
In addition to this round of job cuts, Artz said the company will pursue additional cost-cutting measures this year.
They include not funding merit increases for headquarters employees, including for leaders, this year.
REI also said it will not backfill recently vacated leadership positions and it will reduce the size of its senior leadership team by 22% this year.
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Furniture Company Now Lays Off 1,650 Employees
Other Economy News Today
A home improvement retailer now closes all 157 stores and furloughs a whopping 700 employees, part of a plan to wind down operations.
Kelly-Moore Paints has suffered financial distress for years from paying out about $600 million in asbestos litigation claims and still faces millions of dollars more in payments from future asbestos claims, as well as unpaid taxes, according to a company statement.
Kelly-Moore, which operated in California, Nevada, Oklahoma and Texas, said in a statement that it would not file a Chapter 11 bankruptcy reorganization or Chapter 7 liquidation, since it does not have the capital to fund its continued operations, it leases all of its facilities, and it has no unencumbered hard assets that could be made available to distribute to creditors.
The regional paint store chain, which was founded in 1946, had moved its headquarters to Irving, Texas, in 2023 after operating from its main office in San Carlos, Calif., for 77 years.
The company had hired financial adviser firm Houlihan Lokey to help seek capital for a business turnaround and entertain offers from interested investors, but was unable to secure a letter of intent from any investor and failed to obtain additional funding to continue operations, reports TheStreet.
The company began closing its facilities on Jan. 12, including all of its retail stores and its manufacturing facility in Hurst, Texas, but said it would try to continue fulfilling previously placed customer orders from existing inventory at its Union City, Calif., distribution facility
Kelly-Moore said employees will be fully compensated for regular time worked, and management will continue its efforts to collect receivables to pay all accrued benefits including paid time off.
For more news and updates like this, opt-in for push notifications.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.