Vince Holding Corp notes that Rebecca Taylor has faced increased headwinds from the range of macroeconomic and pandemic-related issues in the industry over the past two years.
In its second quarter, net sales at Rebecca Taylor fell 27.9% to US$8.3m.
Loss from operations was US$5.5m compared to a loss of US1.6m year-on-year. It includes an impairment charge of $1.7m associated with the Rebecca Taylor indefinite-lived trade name and $0.9m associated with property and equipment of certain Rebecca Taylor retail stores.
The company has now made the decision to wind down its Rebecca Taylor business to focus its resources on the Vince brand. The company is in discussions with its lenders to finalise the wind-down plan, which is expected to include selling off its assets and exiting its various business channels.
Jack Schwefel, CEO, said: “Given the increased headwinds from the range of macroeconomic and pandemic-related issues in the industry that Rebecca Taylor, in particular, has faced over the past two years, we have made the difficult decision to exit our Rebecca Taylor business. The closure of Rebecca Taylor will allow the company to focus on Vince’s core businesses and our overall financial foundation for the long term.”
Vince Holding Corp Q2 results.
Overall the business reported a US$15m loss compared with the same period a year earlier.
Loss from operations was $5.2m compared to income from operations of $2.6m in the same period last year.
Net sales increased 13.4% to $89.2m as compared to $78.7m in the same period last year reflecting a 20.5% increase in Vince brand sales and a 27.9% decrease in Rebecca Taylor and Parker sales, combined.
Schwefel said: “During the second quarter we saw momentum in Vince across both our women’s and men’s businesses as customers have returned to more normalised activities and events and are gravitating to the versatility of our sophisticated high-quality assortment. While we are operating in a challenging macro environment with increased pressure on profitability, we remain focused on executing against our strategic initiatives for Vince, including the upcoming relaunch of the brand’s e-commerce platform.”