Kit and Ace Closing Stores, Laying Off Staff

Kit and Ace, started by lululemon founder Chip Wilson, is laying off staff in its headquarters and closing stores in the U.S., U.K. and Australia. In a statement, Wilson said the company is shifting focus to its Canadian locations and global e-commerce platform. It isn’t clear how many staff members have been laid off, however. About 20 percent of Kit and Ace’s 280 head-office employees were laid off in September, and 35 employees, or 10 percent of head office staff, were laid off in February 2016.

Total Retail’s Take: This is a necessary move by Kit and Ace. Although it's never good to hear about job cuts, this strategy may help the company out in the long run. If Kit and Ace is able to establish itself in Canada, future expansion into other markets — including a re-entry into the U.S. — will be easier.