Americcan brand Guess is set to close nearly two dozen stores in a major blow for fashion customers as company bosses consider a multi-hundred-million dollar lifeline offer
A major fashion brand has announced it plans to shutter 20 stores this year in a major blow to shoppers.
American brand Guess confirmed the 20 sites are “underperforming stores” across the US, although it has not confirmed exactly where they are located. The move is part of its plans to cut the number of North American stores by about two dozen. The news also represents uncertainty for UK customers as the brand has several stores in the UK. Guess CEO Carlos Alberini recently confirmed the details in a recent company call. He told staff the number of people going to its retail stores had continued to decline.
In its 2024 sales season, the Los Angeles businessman reported making about $84 million (about £65 million). It represented a whopping 30 per cent drop from the 2023 season, as reported by the MailOnline.
The move comes as the company debates a $663 million (about £533 million) lifeline. Guess said it has received an offer from WHP Global, which owns Toys R Us, Issac Mizrahi, Vera Wang and Anne Klein.
Neil Saunders, the managing director of retail at GlobalData previously told DailyMail.com: “This is a typical play from WHP Global. They see Guess as a brand that they can grow and develop through their operating model and distribution network.”
Guess is estimated to have some 385 stores in the Americas with 1,553 stores across the globe. The brand is generally considered to be a mid-tier fashion outlet that offers stylish clothes at a more affordable price.
The company also sells perfume, shoes and bags to name a few items. Guess is also undergoing significant operational changes that includes plans to exit direct operations in the China region.
It comes shortly after a retailer with UK outlets announced it would be closing several stores with staff allegedly being told their wages had been delayed. Select Fashions, which is owned by Turkish entrepreneur Cafer Mahiroğlu, has been quietly shuttering some of its stores since January following struggles in the UK market.
The fashion brand closed 35 stores earlier this month with several people facing losing their jobs. There have been reports that insolvency firm Moorfields have been working on the closure since Friday following a meeting with officials at the company.
Guess is not the only retailer to face closing several stores across the US as purchasing habits change across the country. Experts have predicted as many as 15,000 shops in the US will shutter with many being banks, pharmacies and retail stores.
