Henri Bendel is going out of business after 123 years
Luxury brand Henri Bendel announced Thursday that it’s shutting down its website and closing all of its 23 locations, effective January 2019.
Its parent company, L Brands, said in a statement that the move was needed to improve the company’s overall profitability and to focus on its much larger brands that “have greater growth potential.”
L Brands’ flagship brands include Victoria’s Secret and Bath & Body Works.
Bendel, like other brick-and-mortar retail brands, have been struggling with sluggish sales due to the uptick of online retailers in recent years. Last year, the company reported total revenue of $12.6 billion. For Bendel, sales have dramatically slowed, and revenue is forecast to hit $85 million in 2018, according to L Brands.
The upscale brand, which is best known for its designer purses and shoes, was founded in 1895 by Henri Bendel. It was then acquired by L Brands in 1985, which led to its expansion into 11 states.
According to the brand’s website, it was one of the first luxury retailers to open a flagship store on New York’s Fifth Avenue in 1913. That location, however, will shutter in upcoming months.
Leslie Wexner, chairman and CEO of L Brands, told shareholders Thursday that the company is committed to improving its shareholder value and the decision to cease Bendel’s operations is “right for the future growth of our company.”
All associates are expected to stay with the business through January and will be offered retention bonuses. Additionally, once positions are eliminated, they will be “invited to interview for other open positions” within the company.
L Brands shares are up 5 percent on the news.