Diane von Fürstenberg to pay laid off employees ‘in full’
Fashion designer clarifies that she intends to pay furloughed DVF employees as brand pushes forward during COVID-19
Face masks are taking over the fashion industry as the top trend of coronavirus. FOX Business' Gerri Willis with more.
Iconic fashion designer Diane von Fürstenberg wrote on Instagram that laid-off employees of her struggling company will be paid in full including severances.
The statement was in response to a New York Times article that was written about the closing of her company's clothing stores which laid off 60 percent of the retail staff in the United States, Britain and France, and the filing of Chapter 11-style bankruptcy in Europe in relation to the coronavirus pandemic.
The report detailed how creditors have been complaining about unpaid bills and how some employees have not received severance.
“In reference to the NYT article, I would like to clarify a few things and not be misunderstood. We intend to pay all employees in full, including severance. I also want to mention that we have taken no government funds throughout,” she wrote in an Instagram post on Monday, which showed a snapshot of the printed newspaper article.
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The article, which was originally published online Wednesday, July 22, reported that several DVF employees had been laid off without severance pay and even cited an emotional but now-deleted Instagram comment that circulated among current and former staff about workers being furloughed without salary.
“Some of us are struggling to pay bills, feed our families and enjoy this time of resetting you speak of,” a part of the comment read – a direct quip at the 73-year-old designer’s April 13 post about the pandemic forcing the world to pause. She advised her followers at the time to “take advantage of it, to eventually reset.”
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In her latest post, though, von Fürstenberg explained that her company had to “close many stores and shrink operations” to survive.
FOX Business reached out DVF for clarification on how the fashion house intends to pay back its laid-off employees. A response was not immediately issued upon request.
Diane von Furstenberg & Barry Diller on the red carpet at the 2017 Vanity Fair Oscar Party held at the Wallis Annenberg Center in Beverly Hills, California, Sunday February 26, 2017. (Prensa Internacional via ZUMA Wire)
However, von Fürstenberg showed optimism in her Instagram post about the article.
“We will continue to design and deliver the global community of Women InCharge our timeless fashion, our exclusive prints and our honest message,” she shared. “I want to thank my faithful consumers and partners that have supported me so long... I will not disappoint you. Owning my vulnerability through these hard times and learning from it will make me and my brand stronger.”
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DVF has reportedly faced financial challenges since 2015 but the company is currently restructuring.
It is likely that von Fürstenberg’s 21-year-old granddaughter Talita will be a part of the brand’s revival plan, according to The New York Times. A capsule collection named “TVF for DVF” was launched in 2019 as a way to introduce the young family member into the company.
The famous designer’s billionaire husband Barry Diller has also been involved in keeping DVF alive.
Retail took a historic plunge this spring due to pandemic-related shelter-in-place orders issued throughout the country. High-end and mass-market department stores have filed for bankruptcy as a result, including Neiman Marcus and J.C. Penney. However, apparel stores have picked up in sales as the country has begun to reopen.
In June, clothing and accessories stores received a 105.1 percent increase in sales compared to the previous month, according to data from the U.S. Census Bureau and U.S. Department of Commerce.