(Filed Under Fashion News). The Bon-Ton Stores, Inc. a retailer that offers a broad assortment of brand-name fashion apparel, intimate apparel and accessories for women, men and children, has announced the implementation of a cost-saving plan, which includes the elimination of approximately 1,150 positions.
Actions to be taken in fiscal 2009 include: reduce corporate and store personnel by approximately 1,150 positions; reduce other non-associate based costs; eliminate 2008 bonus for senior executives; eliminate 2009 merit-based wage increases across the entire company; suspend employer contributions to the company’s 401(k) plan; reduce capital spending to $40 million; and adjust inventory levels in response to sales trend.
With the new cost-saving plan, the company hopes to increase their income to $70 million annually.
“We are taking necessary actions to reduce costs in response to additional pressure on the retail industry brought on by significant deterioration in both the financial markets and macroeconomic environment,” said Bud Bergen, president and CEO of the company. “We believe the reduction in force and other initiatives we have outlined will improve our cost structure and will better position the company for the current difficult economy and for the longer term.”see more
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