Phillips-Van Heusen closing Chattanooga warehouse

Phillips-Van Heusen closing Chattanooga warehouse

85 employees to be laid off by the shut down

June 15th, 2017 by Mike Pare in Business Diary

Staff photo by Mike Pare / The Phillips-Van Heusen facility near Bonny Oaks Drive and Highway 153 is slated to close next month, according to the Tennessee Department of Labor and Workforce Development.

Photo by Contributed Photo /Times Free Press.

The longtime Phillips- Van Heusen warehouse and distribution center in Chattanooga plans to shut down next month and lay off 85 workers.

PVH Corp., the clothing conglomerate better known as Phillips-Van Heusen, has told the Tennessee Department of Labor and Workforce Development that it will close the 3915 Volunteer Drive facility in July.

"PVH Corp. has filed an official WARN Notice notifying the agency of a permanent closure which is effective July 14," the department reported.

A manager at the facility, located off Bonny Oaks Drive near Highway 153, declined to comment, referring calls to the company's New York City headquarters. It also did not answer questions about the planned closing.

The company, which makes and sells the Calvin Klein, Tommy Hilfiger, Van Heusen and IZOD brands among others, owns the Chattanooga facility that was built in 1964, according to the Hamilton County Assessor of Property's office.

The assessor's office shows PVH Corp. has a 269,000-square-foot center on Volunteer Drive sitting on 13.5 acres, with the building and land valued at $4.8 million. But, the company's latest 10K filing with the Securities and Exchange Commission said it has 451,000 square feet of space in Chattanooga.

In its first quarter financial results released last month, PVH's earnings before interest and taxes on a GAAP basis decreased to $113 million compared to $295 million a year earlier, principally driven by an increase in costs.

The company cited "the volatile macroeconomic environment and the highly promotional retail market in the U.S."

Retailers have been closing hundreds of stores amid declining sales, and a report released last week by Moody's Investors Service indicates that 22 major retailers are at serious risk of bankruptcy, according to Money magazine.

PVH Corp. is one of the largest global apparel companies with $8.2 billion in 2016 revenues, the 10K filing said. The company has 35,000 employees operating across 40 countries, it said.

On an earnings per share basis in the first quarter, the company reported 89 cents versus guidance of 73 cents to 75 cents on a GAAP basis.

Emanuel Chirico, the company's chief executive and chairman, said last month in a statement that the business continues to experience momentum in its Calvin Klein and Tommy Hilfiger businesses.

That performance allowed PVH Corp. to exceed its sales and earnings guidance for the first quarter "despite the volatile macroeconomic environment and the highly promotional retail market in the U.S.," he said.

"As the global retail environment shifts, we continue to focus on adapting to change, while investing in our brands and operating platforms to capitalize on the opportunities for each of our businesses," Chirico said.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.