Skip to main content

Destination Maternity reducing headcount as part of restructuring

Destination Maternity Corp. is streamlining its product and sourcing teams as it strives to become a “leaner and more nimble” organization.

The move is part of the maternity apparel retailer’s efforts to reduce costs following “ongoing rationalization” of its overall product mix and improvements in inventory efficiency. It is expected to yield net cost savings of approximately $1.2 million to $1.4 million in fiscal year 2019.

Destination Maternity expects the restructuring, which includes headcount reductions in its product and sourcing divisions, to result in a one-time severance charge of approximately $0.5 million during the third quarter of 2018.

“Recognizing the need to focus our product assortment, rationalize costs and improve inventory efficiency, we completed an in-depth review of our product offer, overall inventory levels and distribution channels,” said CEO Marla Ryan. “Through this effort, we identified profitable solutions to improve our product mix and reduce inventory as we begin 2019. We also made the difficult decision to reduce headcount in our product and sourcing divisions to better rationalize resources and costs across the organization.

The restructuring is part of the initial stages of Destination Maternity’s previously announced plan to improve its long-term growth and profitability.

“While these actions are never easy, the changes we are implementing will enable us to become a leaner and more nimble organization,” said Ryan. They will also allow us to reallocate more of our resources on becoming a digital flagship serving the needs of today’s millennial moms and moms2be.”

As of August 4, 2018, Destination Maternity operates 1,114 retail locations in the United States, Canada and Puerto Rico, including 480 stores, predominantly under the trade names Motherhood Maternity, A Pea in the Pod and Destination Maternity, and 634 leased department locations.
This ad will auto-close in 10 seconds