$3 billion clothing company

How we helped

• Fashion, Apparel & Luxury
• Retail

Coming out of the pandemic, a multi-channel, multi-brand apparel, footwear and accessories retailer was seeing decreasing sales and had almost no operating margin. ​Across the business, profitability varied and functions were siloed. The cost structure was unsustainable. ​

AlixPartners was engaged to evaluate the entire North America business and build out a new organizational structure with simplified reporting and a rebalancing of roles and responsibilities to reduce cost and improve profitability. We conducted workload driver and productivity analyses to assess each organization, and used our capability assessment and industry benchmarking to identify, simplify, and streamline processes, with an eye to feasibility in the future. ​

We designed new organizational structures across all brands and functions, with standardized titles, roles, and responsibilities, and leveraging of synergies. The new organizational structure presented $120-180 million in net synergies, and a 20-30% reduction in force​.

Combining both payroll and non-payroll, we delivered total benefits of $300 million and improved operating margin for the North America business, pushing EBITDA to 10%, with 95% of the savings achieved in the first 18 months.