With a focus on increasing shareholder value, L Brands, Inc. announced the January 2019 closing of all 23 Henri Bendel stores and the Henri Bendel e-commerce website. The stores include the company’s Fifth Avenue store as well as smaller-format stores in 11 states.
All stores and the website will remain in operation through January 2019 with new merchandise continuing to arrive through the holiday season.
“We are committed to improving performance in the business and increasing shareholder value. As part of that effort, we have decided to stop operating Bendel to improve company profitability and focus on our larger brands that have greater growth potential,” said Leslie Wexner, Chairman and CEO of L Brands.
Wexner added, “This decision is right for the future growth of our company, but not easy because of the impact to our L Brands family. I want to thank our Bendel associates for their dedication to this iconic brand and to our loyal Bendel customers.”
The associates staying with the business through January will be offered retention bonuses. At the point when associates’ positions are eliminated, they will be invited to interview for open positions within the company or will be offered separation pay and job search support services.
Operating results for Henri Bendel are included in the company’s Other segment for financial reporting. The company estimates that Henri Bendel 2018 revenues and operating loss, excluding closing costs, will be approximately US$ 85 million and US$ 45 million , respectively. The company is in the process of estimating the costs associated with closing the business.