Layoffs and Direction Change at Reef
Apparel giant VF Corp. laid off a substantial number of Reef employees on Jan. 6 in a major bid to reposition the core surf apparel and accessories brand.
“The layoffs were throughout the company, and every department was affected,” said Kevin Flanagan, Reef’s vice president of marketing. “The apparel department was the most affected in terms of people lost,” he said, declining to give specific figures.
With the layoffs came a change of direction for the Carlsbad, Calif.–based brand, which in recent years had grown from a sandal brand to a surf apparel and swimwear brand for men and women. Now, Tustin, Calif.–based Raj Manufacturing will produce Reef-branded swimwear under a license. Reef’s apparel programs have been deeply slashed. “We’re focusing on the core essentials,” Flanagan said. That means coverups, sundresses, T-shirts and boardshorts for women; T-shirts, boardshorts and fleece for men.
A renewed focus on sandals will also be key going forward. “Our goal is to increase our market share. With the current economic climate, retailers are going narrow and deep with their buys. We want to capitalize on that,” Flanagan said.
Reef executives expect the brand’s trimmed business model to be temporary. “When the market comes back, we hope to build on the foundation that we have built in the last few years,” Flanagan said. “Up until the fourth quarter of this year, we were making fantastic traction.”
Reef is a division of Greensboro, N.C.–based VF Corp. —Erin Barajas
