Designer Brands Inc., the parent of DSW, said it is implementing temporary leaves of absence for over 80 percent of its workforce, effective March 29. The move follows the temporary closure of its North American stores in March 2017.
The stores remain closed. The employees on a temporary leave of absence will not receive direct compensation from the company but will continue to receive medical, prescription and dental benefits under the company’s benefit plan.
For nearly all employees not placed on temporary leave, the company is implementing pay reductions. Base salaries for the company’s executive officers, including each of its named executive officers, will be reduced by 20 percent, effective March 29, 2020.
Annual cash retainers for all non-employee directors serving on the company’s Board of Directors will be reduced by 20 percent effective March 29, 2020. All new hires and 2020 merit increases have been frozen.
The company plans to continue to operate its e-commerce business, distribution centers and IT centers.
The Company operates a portfolio of retail stores in nearly 1,000 locations under the DSW Designer Shoe Warehouse, The Shoe Company and Shoe Warehouse banners and services footwear departments in the U.S. through its Affiliated Business Group (ABG).
Designer Brands designs and produces footwear and accessories through Camuto Group which owns licensing rights for Jessica Simpson footwear business and footwear and handbag licenses for Lucky Brand and Max Studio. In partnership with a joint venture with Authentic Brands Group, Designer Brands also owns a stake in Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, and others.
Photo courtesy DSW
