Parent company L Brands announced Thursday its closing Bendels website and all of its 23 stores, including the stores iconic Fifth Avenue location in New York, in January 2019 because of sluggish sales.
L Brands (LB) said in a statement that its closing Bendel “to improve company profitability and focus on our larger brands that have greater growth potential,” which includes Victorias Secret and Bath & Body Works.
Video: Henri Bendel Closing
Bendel makes up a small portion of L Brands sales. Last year, the company reported revenue of $12.6 billion. The company said Bendels 2018 sales were approximately $85 million, adding that its in the process of estimating closing costs.
The upscale brand, best known for its designer purses and shoes, was founded in 1895 by Henri Bendel. In 1913, the brand became one of the first luxury retailers to open a flagship store with an “upper FIfth Avenue address,” according to its website. L Brands acquired Bendel in 1985 and led its expansion into 11 states.
The stock is down 55% for the year, making it one of worst performing companies in the S&P 500 for the year.
Victorias Secret owner L Brandson Thursday said it would close all 23 of its Henri Bendel stores and the Henri Bendel e-commerce website in January.
The company cut its full-year earnings forecast in August, blaming falling demand for its PINK line of lingerie amid competition from brands such as American Eagle Outfitters Aerie.
The company expects Henri Bendel, which sells womens handbags, jewelry and luxury fashion accessories, to bring in revenue of about $85 million for 2018. It did not provide any details on costs related to the closing of the business.
Heri Bendel, which opened its first store in 1895 in New Yorks Greenwich Village, was bought by L Brands in 1985.
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