New Owners Laying Off 65 Employees at 7 For All Mankind, Ella Moss and Splendid
Two months after Delta Galil acquired 7 For All Mankind, Ella Moss and Splendid, the Israeli company is laying off 65 people.
The announcement was made to employees on Thursday, Sept. 8, and cuts across all departments, according to inside sources.
In addition, 7 For All Mankind’s offices, located in a chandelier-laden luxurious building that encompasses 225,000 square feet in Vernon, Calif., will eventually be merged with the offices of Ella Moss and Splendid, which moved to Alameda Square near downtown Los Angeles in 2013.
The cuts at the three contemporary labels went across several departments that included marketing, merchandising, retail, design and operations, sources said.
In June, Delta Galil bought the three high-end labels from VF Corp. for $120 million. The deal was considered a bargain. The acquisition was expected to add $300 million to Delta Galil’s annual sales in 2017.
Delta Galil is a more than 40-year-old clothing, intimatewear and activewear manufacturer based in Tel Aviv. It owns several lingerie brands as well as P.J. Salvage, a sleepwear and loungewear brand in Irvine, Calif., that it acquired last year. The Israeli company is traded on the Tel Aviv Stock Exchange and has revenues of more than $1 billion.
VF Corp., based in Greensboro, N.C., bought 7 For All Mankind in 2007 for $775 million. It was a one-third owner in Mo Industries, the parent company of Splendid and Ella Moss. In 2009, VF Corp. acquired the other two-thirds for $161 million plus $47 million in debt.
7 For All Mankind was started in Los Angeles in 2000 by Peter Koral, Jerome Dahan and Michael Glasser during the height of the premium-denim boom.