PVH Corp, owner of Calvin Klein and Tommy Hilfiger, will cut jobs in North America and close stores housing brands such as Van Heusen and IZOD.

PVH Corp announced Tuesday it would cut 450 jobs in North America and shutter all of its 162 Heritage Brands retail stores, which house brands such as Van Heusen and IZOD, as the coronavirus crisis wreaks havoc on the apparel industry.
The Tommy Hilfiger and Calvin Klein owner said the layoffs, affecting 12% of its office workforce, would save about $80 million annually.
“The COVID-19 crisis is dramatically reshaping the retail landscape in ways that we believe will be long-term in nature and far-reaching in terms of consumer purchasing behavior,” President Stefan Larsson said in a statement to the press.
“While these decisions are always challenging, they are strategically important for the long-term health of PVH.”
Bernstein analyst Jamie Merriman said in a note to clients that this is “a positive development for PVH as the company exits a declining business and reduces costs.”
The company joins a growing group of retailers to have announced permanent store closings and job cuts over the past few weeks as lockdown restrictions have eased. These include Zara’s parent Inditex, H&M, Nordstrom, and Victoria’s Secret. 
Meanwhile, other retailers that had problems going into the crisis have taken more drastic measures to save their business by filing for bankruptcy.
In a note to clients in April, a group of UBS analysts estimated that as many 100,000 stores could close in the US by 2025. 
These analysts noted that the coronavirus isn’t the only reason for the expected store closings, but that it was accelerating a trend that was already in motion: that shoppers are increasingly moving online. 
Loading
Something is loading.