Henri Bendel to Close After 123 Years
September 13 2018 - 8:17PM
Dow Jones News
By Khadeeja Safdar
Henri Bendel, the specialty retailer known for its signature
brown-and-white bags, is shutting down after more than a century in
business.
L Brands, which acquired the retailer in 1985, said it would
close all 23 Henri Bendel stores, including its Fifth Avenue
location, and its website, after the holiday season. The company
said it plans to focus on its larger businesses including
Victoria's Secret, which has struggled in recent quarters.
"We have decided to stop operating Bendel to improve company
profitability and focus on our larger brands that have greater
growth potential," said Leslie Wexner, chairman and chief executive
of L Brands, which also owns Bath & Body Works.
Henri Bendel, a designer born in Lafayette, La., opened his
first shop in 1895 in Greenwich Village, Manhattan. He sold
apparel, fragrances, cosmetics and handbags and created the store's
iconic bag.
The brand was a pioneer in retail and a mainstay in New York
City. On its website, Henri Bendel says it was the first luxury
retailer with an upper Fifth Avenue address, the first to hold a
semiannual sale and the first to stage a fashion show. In the 1960s
it hired Andy Warhol as an in-house illustrator.
Under L Brands's ownership, the store stopped selling apparel
and focused on handbags and accessories.
Bendel only makes up a small portion of total sales at L Brands,
which reported revenue of $12.6 billion last year. The company
estimates that Henri Bendel's full-year revenue and operating loss,
excluding closing costs, will be approximately $85 million and $45
million, respectively.
Mr. Wexner has a history of shedding businesses to focus on
segments that he believes are more lucrative. Over the decades, he
has added and sold off several brands, including apparel chains
like Abercrombie, Lane Bryant and Express to focus on beauty and
lingerie. In 2016, he eliminated swimwear at Victoria's Secret to
focus on sportswear.
L Brands recently cuts its full-year earnings guidance, citing
declining sales at its lingerie brand. Victoria's Secret, including
Pink, reported lower comparable sales for the latest quarter and
the company said Pink's leader would be leaving at the end of the
year.
L Brands said Bendel employees will be offered retention bonuses
for staying until January and will be invited to interview for
openings at the company's other units.
Write to Khadeeja Safdar at khadeeja.safdar@wsj.com
(END) Dow Jones Newswires
September 13, 2018 20:02 ET (00:02 GMT)
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