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Dive Brief:
- Jack Schwefel resigned from his position as CEO at Vince Holding Corp., effective immediately, according to a press release Tuesday.
- Vince’s board of directors appointed David Stefko, a board member and former Vince CFO, to hold the position in an interim capacity until a successor is named. The company has initiated a search process to identify the next CEO, per the release.
- The news comes as Vince is undergoing a transformation program meant to boost its profitability and create $30 million in savings over the next three years.
Dive Insight:
Stefko has held the interim CEO position once before, from August 2020 to March 2021, prior to Schwefel’s appointment.
Michael Mardy, chairman of the board of directors for Vince, said in the release that the board wished Schwefel the best “as he pursues other opportunities.”
“We are committed to finding a leader who has the skills and vision to continue to keep Vince on its trajectory to achieve its long-term objectives,” Mardy said. “Through his experience as CFO and as a member of our Board, Dave brings significant understanding of the Company and is well-respected across the organization. Having previously served as Interim CEO during a time of prior transition and amidst the volatility of the Covid-19 pandemic, the Board is confident in Dave’s ability to lead the organization during this period.”
Vince is set to report its full-year financial results in late April 2024, and the company noted in the release that it “remains on track with its profitability objectives” for 2023.
The transformation program, which was announced in November 2023, includes streamlining manufacturing and production operations, reducing promotional activity, “optimizing breadth and depth of markdowns,” and enhancing efficiencies in store operations, corporate overhead and third-party spending. A news release about the program didn’t provide specifics on some of these cost-cutting measures.
Authentic Brands Group controls the intellectual property of the Vince brand through a subsidiary. Vince Holding Corp. announced the $76.5 million cash deal in April of last year and has a 25% ownership stake in the subsidiary.
Vince last reported financial results in December, when it recorded a Q3 net sales decrease of 14.7% to $84.1 million. Of this, a 6.2% decrease was attributed to the Vince brand. The company attributed the rest of the year-over-year decline to a 100% decrease in the Rebecca Taylor and Parker segment sales. In 2022, the company announced it was winding down the Rebecca Taylor business and in 2020, the company announced a “pause” on Parker NY sales.
via https://www.aiupnow.com
Laurel Deppen, Khareem Sudlow
