big loss for Greensboro (2015, employment, salaries)
Greensboro, Winston-Salem, High PointThe Triad Area
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NewCo will be a global leader in the denim category, with iconic brands steeped in rich heritage and authenticity, including the Wrangler® and Lee® brands. The VF Outlet business will be part of NewCo’s portfolio.
With estimated annual revenue of more than $2.5 billion and a high single-digit total shareholder return target, NewCo will have an attractive financial profile, including a sustainable high dividend yield. NewCo will have a best-in-class supply chain, channel and category management expertise, reinforced by deep and long-standing relationships with leading global retailers. Additionally, NewCo will have diversified geographic exposure and plans to further extend its geographic footprint with a sharp focus on Asia, building on its established presence in China. NewCo also will have the opportunity to expand its distribution to new customers and categories, with a focus on both their owned and wholesale digital partner channels. NewCo expects to unlock significant scale and cost efficiencies by streamlining operations, providing flexibility to pursue strategic acquisitions over time.
The company also today announced the anticipated designation of Scott Baxter as Chief Executive Officer of NewCo and Rustin Welton as Chief Financial Officer, effective upon completion of the transaction.
“Scott is an extremely talented leader who has a long track record of success, which includes leading the Jeans business from 2011 through 2015, a period during which the business grew at a mid-single-digit rate,” said Rendle. “There’s no one more qualified and appropriate to serve as CEO than Scott. I am confident he will do an exceptional job as CEO of NewCo.”
The company plans to announce additional members of the NewCo executive team and further details on the composition of the Board of Directors ahead of the completion of the transaction.
NewCo’s global headquarters will be in Greensboro, N.C. The Lee® brand will move its headquarters to Greensboro from Kansas City, joining the Wrangler® brand.
Rendle added, “We’re proud of our Greensboro, N.C., roots and remain committed to the community, including a strong ongoing employment presence. Combined with the relocation of the Lee® brand from Kansas City and the establishment of a major new public company with Greensboro headquarters, we expect that total VF and NewCo employment in the area will remain at current levels.”
“This is great news for our associates, who will become part of two more sharply-focused, dynamic companies, with the ability to build even stronger partnerships with customers and deliver fantastic innovation for consumers,” he said. “I want to thank all of our outstanding colleagues for the extraordinary work they have done to get us to this point. Their talent, passion and hard work will allow both VF and NewCo to succeed long into the future.”
"NewCo’s global headquarters will be in Greensboro, N.C. The Lee® brand will move its headquarters to Greensboro from Kansas City, joining the Wrangler® brand.
Rendle added, “We’re proud of our Greensboro, N.C., roots and remain committed to the community, including a strong ongoing employment presence. Combined with the relocation of the Lee® brand from Kansas City and the establishment of a major new public company with Greensboro headquarters, we expect that total VF and NewCo employment in the area will remain at current levels.”
To me, it reads like this move is more window dressing as far as Greensboro is concerned. A few jobs lost and a few jobs gained. It sounds bad, but the net result will probably be negligible. I don't believe most of VF's highly paid folks sat in Greensboro anyways. In fact, long term this might even be a win.
To me, it reads like this move is more window dressing as far as Greensboro is concerned. A few jobs lost and a few jobs gained. It sounds bad, but the net result will probably be negligible. I don't believe most of VF's highly paid folks sat in Greensboro anyways. In fact, long term this might even be a win.
considering they're moving Lee Brand HQ and operations to greensboro....while keeping existing VF opperations in greensboro....along with opening up a new corporation and HQ...that sounds like a pretty big win for the boro.
But everybody was shouting doom & gloom before looking at what's really going on..
The main loss for G'Boro is really around losing a Fortune 500 company.
No matter how you try to slice and dice it, overall the net effect of this move is NOT a positive for Greensboro. VF moved its HQ from another location to Greensboro two decades ago, and now they are moving the HQ again to a bigger more prosperous city. Obviously the search for a new city was propelled by the need for things that Greensboro couldn't currently offer.
No matter how you try to slice and dice it, overall the net effect of this move is NOT a positive for Greensboro. VF moved its HQ from another location to Greensboro two decades ago, and now they are moving the HQ again to a bigger more prosperous city. Obviously the search for a new city was propelled by the need for things that Greensboro couldn't currently offer.
Yeah, the big wigs at VF must really like getting high.
No matter how you try to slice and dice it, overall the net effect of this move is NOT a positive for Greensboro. VF moved its HQ from another location to Greensboro two decades ago, and now they are moving the HQ again to a bigger more prosperous city. Obviously the search for a new city was propelled by the need for things that Greensboro couldn't currently offer.
I think it's too early to tell whether this will be a positive or negative in the long run. Let's give it a year or two.
The main loss for G'Boro is really around losing a Fortune 500 company.
According to Brent Christensen the CEO of the Greensboro Partnership, Greensboro will be gaining a new fortune 500 company with the addition of NEWCO. I highly doubt it will be a fortune 250 company like VF Corportation is but it may crack the top 500 hopefully. Greensboro will be losing 85 VF executive positions but will gain 85 Lee executive positions when they relocate to Greensboro. I am sure VF executive salaries are overall higher than Lee's but I don't think it will be a huge difference. I believe all in all this has worked out the best it could have for Greensboro with the departure of the VF HQ. Greensboro will still have a a significant HQ with NEWCO.
Also NEWCO will be looking at several sites throughout Greensboro for its new headquarters and Revolution Mill is rumored to be a possible location for this new HQ. If so this will be a transformative addition to the Revolution Mill complex. If they don't chose Revolution Mill maybe this is Roy Carroll's opportunity to lure a major HQ to his development in downtown Greensboro.
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