Guess plans to cut around 9 % of its global store network by closing 100 stores across the world. Most of these closures over the next 18 months will be in North America and China as many of the retailer’s leases in these regions are set to expire soon. The brand reduced its expenses during the shutdown by furloughing all store workers and half its corporate workforce while laying off 150 employees at its Los Angeles headquarters. Its management also cut some salaries by as much as 70 %, and cancelled all capital expenditures that weren’t critical.
The fashion retailer suspended rent payments in April and is now in negotiations with landlords. About 70 % of the company’s leases globally are set to expire in the next three years.
In the US and Canada, one-third of Guess stores have their leases ending soon and 15 % of its European shops will come up for renewal in the next year.