Business Restructuring

Diane von Furstenberg's brand is taking a hit from coronavirus. (Credit: Wikimedia Commons) Diane von Furstenberg's namesake clothing line is going through the wringer. In a sign that iconic brands are being hit just as heavily as small mom-and-pop shops around the country amid Covid-19, the famous label has laid off 75% of its 400-person staff, according to People, and plans to shutter all but one of its 19 retail stores — only the store and company headquarters in lower Manhattan will remain open. The brand, which started in 1972 and skyrocketed in popularity because of von Furstenberg's wrap dress, will instead pivot to a "digital-only, China-focused" business model, according to the outlet Business of Fashion. DVF's first round of widespread layoffs, which came down in May, were conducted over Zoom "without any comment from von Furstenberg" and leaving a "skeleton crew" of just 25% of staff employed. Additional executives were let go in June, according to BoF. The fashion retailer joins other labels, including Bergdorf Goodman and J. Crew, in suffering a two-punch hit in sales — the first came when shoppers started to lose interest in spending their dollars at brick-and-mortar department stores, and the second with the coronavirus and the new restrictions on businesses.

Business Restructuring

Even DVF May Not Be Able to Recover from Covid-19

The Story Exchange

Business Restructuring

Even DVF May Not Be Able to Recover from Covid-19

The Story Exchange

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