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Stitch Fix officially announces almost 400 layoffs
Paula Wolf//July 14, 2023//
After announcing last month that it was permanently closing its Lower Nazareth Township warehouse at 4770 Hanoverville Road, leaving hundreds jobless, Stitch Fix Inc. filed a Worker Adjustment and Retraining Notification letter confirming the news.
The self-described “trusted online personal stylist” told the state that 393 employees are affected by the move to consolidate its distribution center network. Layoffs are set to begin in phases Sept. 8, with the last date of onsite operations anticipated to be Feb. 2, 2024.
Required notices under the federal WARN Act were provided to affected employees via email July 10. None is represented by a union.
In its report on financial results for the third quarter of fiscal year 2023, which ended April 29, Stitch Fix said it would not renew its lease at the Hanoverville Road facility as it closes two of its five distribution centers (the other center being shuttered is in Dallas).
“By moving to a three-distribution center network, from our current five-distribution center network,” Stitch Fix said in the report, “we will have greater depth and breadth of inventory available to our stylists to serve clients.”
The company also showed net revenue down 20% year over year in the report and spoke of possibly exiting the United Kingdom market in fiscal year 2024.
San Francisco-based Stitch Fix hired 500 workers for its Lehigh Valley location when it opened in 2016.
Late last year, it closed its Mohnton Mills operations in Berks County. Venice, California-based clothing brand Buck Mason bought the vacated Stitch Fix property and turned it into the Buck Mason Knitting Mill factory.
Paula Wolf is a freelance writer
