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Dive Brief:
Dive Insight:
The site closure comes as Wolverine streamlines its operations as part of a previously announced restructuring plan. The stated mission of that plan is to deliver $215 million in annual savings and stabilize the business by divesting the company’s noncore assets, reducing inventory, paying down debt and right-sizing its cost structure.
Wolverine sold Sperry to Authentic Brands Group and the Aldo Group in January of this year. 2023 was a year of Wolverine divesting several business lines, including Keds and its U.S. leathers business.
Sarah Davasher-Wisdom, president and CEO of Greater Louisville Inc., the chamber of commerce for Louisville, said her organization is getting in touch with Wolverine in hopes of connecting displaced employees with hiring companies in the region.
“Unfortunately, this news reflects challenges that companies in certain industries across the U.S. are facing due to changing consumer demands and inflationary pressures,” Davasher-Wisdom said in an email to sister publication Fashion Dive. “However, we remain optimistic that our regional economy is in a strong position and believe that these kinds of announcements will be minimal across our region.”
Wolverine recently reported a 20.8% revenue slump in its fourth quarter, and it’s expecting further revenue declines in the 2024 fiscal year. Wolverine projects revenue of between $1.7 billion and $1.75 billion for the year, marking a 12.2% to 14.7% decline from 2023 results.
Rockford, Michigan-based Wolverine has two remaining U.S. distribution centers, in Howard City, Michigan, and Beaumont, California.
via https://www.aiupnow.com
Laurel Deppen, Khareem Sudlow
