As Sales Decline, Revlon Gets Leaner With Layoffs
The cosmetics, skincare and fragrance giant Revlon Inc. announced Monday plans to cut 1,000 positions in order to save $230 million dollars by the year 2022. The move aims to bounce back the company from a decline in profitability with sales down for five quarters, reported The Business of Fashion. Along with layoffs, Revlon will be refinancing its debt and cutting additional costs to, “significantly enhance the company’s capital structure,” said a statement. [BOF]
LVMH Contest Names its Eight Finalists
Chosen from a group of 20 semi-finalists, the annual LVMH Prize contest finalists were named this week, they are: Ahluwalia, Casablanca, Chopova Lowena, Nicholas Daley, Peter Do, Sindiso Khumalo, Supriya Lele, and Tomo Koizumi. The founder of the LVMH prize, Delphine Arnault, said in a statement, “This year, once more, the semi-finalists impressed us with their creativity and their commitment to creating clothes that are respectful of the environment,” continuing, “The eight finalists all have in common to be very talented in their respective fields and to aspire to enhance know-how.” The finalists will be hosted in Paris on June 5th where the winner of the contest will be determined and announced by its illustrious industry panel. New additions to the group of experts are Rihanna, Virgil Abloh, and Stella McCartney. [Vogue]
The Corona Virus’ Impact on Fashion
The COVID-19 virus has sent shockwaves through every industry and fashion has not been exempt from the social and financial paralysis. While China has been able to slow down the amount of new daily cases to single digits (the lowest number since nationwide reporting began in January), the US and Europe has crept to a halt as travel bans have been issued, communities have been urged to isolate or work from home, major sports and entertainment events have been suspended, and the growing list of schools and universities shutting down. Even Disney World is closing! With all those logistical updates, fashion has in turn responded by postponing imminent fashion weeks in Tokyo, Lagos, Sao Paulo, and Seoul. New York state has banned gatherings with more than 500 people and while the Metropolitan Museum of Art has temporarily closed all its locations, for now, the Costume Institute Gala on May 4th remains on even as the museum takes it day by day. With Italy’s country-wide lockdown, Gucci has closed all of its Italian production sites until the end of the month. [WWD]
Fashion’s Embroidery Problem
The New York Times dropped this week an investigation highlighting how fashion’s luxury brands have been quietly using Indian embroiderers for their goods without adequate pay, health benefits or employment protection. After the deadliest garment industry disaster in history at Rana Plaza factory killed more than 1,100 Bangladeshi workers, a group of luxury houses including Kering, LVMH, Burberry and Mulberry signed the Utthan pact to ensure factory safety in Mumbai and elevate Indian embroiderers. Yet, as the pact is not legally-bounding, conditions have worsened for workers that protest wage issues and subsequently face termination or intimidation. Kering has announced plans to open its own workshop in India to internalize “a significant part of the hand embroidery work” for its brands like Gucci, Saint Laurent, and Balenciaga. [NYT]
