Some of America’s most prominent publicly traded retailers announced that they would furlough bricks-and-mortar employees as the economy has frozen due to stay-at-home orders to stop the spread of the coronavirus.
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According to the United States Department of Labor report on weekly claims that was issued April 2, the advance figure for seasonally adjusted initial claims during the week ending March 28 was 6,648,000, which is an increase of 3,341,000 from the previous week’s level. In California, the state’s Employment Development Department reported 878,727 unemployment-insurance claims for the week ending March 28. Claims for the week ending March 21 were reported at 186,333. According to Dominica Anderson, partner and team lead for Fashion, Retail and Consumer Branded Products at law firm Duane Morris LLP, much uncertainty remains regarding the future of brands in the apparel industry.
“When you look at the financial impact, I’ve read that reports show some companies are self-reporting that they may take up to a 15 percent hit, others are speculating they will have an 85 percent reduction in profit. Those are pretty big swings,” she said. “In the near future, we’re going to see a larger number of the unemployment applicants from the fashion industry.”
To read the full article, visit the California Apparel News website.
