The US textile supplier Vince Holding Corp. announced extensive reforms on Tuesday. With these measures, the company wants to adapt the cost structure to its new business model.
In the spring, the holding company sold the intellectual property rights of its fashion label Vince, including the trademark rights, to the US fashion and media group Authentic Brands Group LLC (ABG). The company, which had previously divested itself of numerous business areas, has since then only operated wholesale and retail sales of the Vince brand as the licensee of a specially founded joint venture in which ABG holds a 75 percent majority.
In order to compensate for the license fees incurred, the running costs should be significantly reduced. From the reforms now announced, Vince Holding expects savings totaling $30 million (28 million euros) over the next three years.
Specifically, the company plans to reduce its production capacity and increase efficiency in the retail network and human resources. In addition, the discount campaigns should be reduced.