Ralph Lauren‘s flagship store on the famed Fifth Avenue in New York City is closing. Tightening of the brand’s finances is what led to the shuttering of store.
Don’t cry too much ‘Lo heads, this Fifth Avenue store is not the Polo Mansion on Madison Ave, so breathe easy.
The moves are part of the company’s “Way Forward Plan,” which was introduced by former chief executive officer Stefan Larsson last year.
Ralph Lauren will also move its current digital operation to a less expensive and more flexible digital platform.
The company said it expects these moves to be wrapped up by the end of March 2018 and to result in annual cost savings of about $140 million. However, the restructuring moves will cost the company about $370 million, mainly from employee severance charges, lease termination fees and inventory related costs.
Ralph Lauren opened the flagship in mid-2014 after signing a lease the year before for a 15-year term that set the yearly rent at $25 million, real estate sources said.
The remaining product at the 711 Fifth Avenue store will be moved to the 867 Madison Avenue flagship and other NYC area stores.
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