Delta Galil makes major layoffs after acquiring brands

Delta Galil Industries, Ltd. recently just completed its acquisition of three apparel brands from VF Corporation. After taking over the companies, the leading manufacturer for apparel products has announced that it will have layoffs for 65 current employees.

The announcement was made on Sept. 8, as reported by Apparel News, where employees from 7 For All Mankind, Splendid, and Ella Moss will suffer layoffs. The cuts will be made in all departments including retail, design and operations, merchandising and marketing. There were no specifics on the exact date of when these layoffs will be happening, however it’s likely that they will be soon as the announcement was made this week.

The Israeli manufacturer and marketer bought the three contemporary brands from luxury company VF Corporation. The brands were considered “underperforming” at the time and were bought at 120 million dollars. Delta Galil bought the brands because of their significant potential for growth. Due to this, the layoffs could be part of a strategic move in order to make all three brands more profitable. However, the future success of the three private apparel brands is yet to be known.