Wilsons to cut 1,000 jobs, close stores
Wilsons the Leather Experts is cutting 1,000 jobs and closing more than half of its shopping mall stores.
Brooklyn Park-based Wilsons (Nasdaq: WLSN) said 938 store-related positions will be affected by the cuts.
Wilsons is also cutting 64 corporate positions at its corporate headquarters, overseas offices and a distribution center in Brooklyn Park.
Wilsons said it plans to remodel its remaining 100 mall stores into its new Studio concept that focuses on accessories for women.
Wilsons had about 3,400 employees at the end of February 2007, according to its most recent annual report. That figure includes part-time employees.
"The decision to take these actions, while very difficult, is the right move for the future of Wilsons Leather," said Mike Searles, Wilsons Leather's CEO said in a statement fast cash. "We expect the cost reduction initiative will enable us to reduce our working capital needs and strengthen our business, as well as provide capital for our remodel efforts to convert all remaining mall stores into our new "Studio" concept."
Wilsons has hired a third-party liquidator and real estate firm to assist in the store closing process, in the next three months.
Wilson's stock was up 4 cents per share, or 5.7 percent Friday, to 74 cents per share.
In addition to the mall stores, Wilsons also operates 118 outlet stores and 14 airport stores.
sblack@bizjournals.com | (612) 288-2103