NYC’s biggest fashion chain K&G is closing stores and cutting more than 20 percent of its workforce in the wake of the Brexit vote.
It’s the latest in a series of moves that have rocked the industry and led to speculation that the retailer is poised to go the way of Gap, Sears, and Nordstrom.
The New York Post reported that K&Gs chief executive officer Steve Schuhmann told employees on Tuesday that he is stepping down.
The move has left many K&g employees feeling like their job is on the line.
The retailer is the most valuable brand in New York City, with more than $8 billion in annual revenue, according to research firm Euromonitor.
The chain has been struggling for years, and this year it posted its worst quarterly sales since 2015.
A few weeks ago, the company posted its first quarterly loss since 2015, when the company filed for Chapter 11 bankruptcy protection.
It was a major blow to a brand that has long been known for high-quality and affordable clothing, accessories, and other products.
Now that K & G is on shaky ground, the fallout is likely to be even more severe.
The retail industry has been under increasing pressure to cut costs, while the Trump administration has been pushing for a more globalized world.
It seems like K& G is taking a major step towards becoming just another big-box store.
The store has been shedding employees all year, according to the Post.
It was already down to 10,000 employees by mid-September, down from an earlier estimate of more than 22,000.
It is expected to be completely closed by the end of the year, although the Post did not provide an official timeline.