L Brands - the parent company of Victoria's Secret, Pink and Bath & Body Works - is slashing about 15% of its workforce at its headquarters.
The layoffs will affect about 850 people, the company said, and is part of big trouble for the company that operates stores for all three brands in Burnaby’s Metropolis at Metrotown.
Victoria's Secret and Bath & Body Works are both still open, but Pink remains closed and it’s future is in doubt considering the company’s dire financial outlook due to the COVID-19 pandemic and online competition.
"Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term," L Brands CEO Andrew Meslow said in a press release. "On behalf of the Board and management team, I'd like to extend our deepest appreciation to the impacted associates for their contributions and dedication over the years."
The layoffs are among a set of cost-cutting measures L Brands announced. The company said it is also working to better manage its inventory costs, changing its store management structure, and continuing to close 250 stores.
This is all part of a record year for bankruptcies that have hit some of the biggest retail companies.
Modasuite Inc., which operates Frank and Oak, recently filed a notice of intention that it plans to file a proposal under the Bankruptcy and Insolvency Act. The company is tens of millions of dollars in debt.
Reitmans (Canada) Ltd. announced it will close two of its retail chains and lay off roughly 1,400 workers as it a restructures under the Companies’ Creditors Arrangement Act. The Montreal-based retailer plans to shutter its 77 Addition Elle stores on Aug. 15, including the one in Burnaby, and already closed 54 Thyme Maternity locations on July 18, including the one in South Burnaby at Market Crossing.
The parent company of Ann Taylor, Loft and Justice also says it will close all of its clothing stores in Canada. There are Loft and Justice stores in Metropolis at Metrotown, Burnaby’s biggest mall. The closures are part of the Chapter 11 bankruptcy proceedings and restructuring the Mahwah, New Jersey-based Ascena Retail Group Inc. has begun in the wake of COVID-19.
- With files from the Canadian Press
