Factory closure and end of production for Stitch Fix's eco-friendly, diverse private label products
In a significant move, online personal styling service Stitch Fix has announced several changes, including the closure of a Pennsylvania cut-and-sew factory and knitting mill, resulting in the loss of 56 jobs. This decision comes as the company is slashing expenses to stem losses.
The company, which acquired the Mohnton Mills plant in 2017 to produce a sustainable, size-inclusive private label called "Mohnton Made," is discontinuing the label. Mohnton Made offered "relaxed, modern styles" in sizes XS to 3X for women and XS to 3XL for men.
Stitch Fix's decision to discontinue Mohnton Made is part of a larger strategy to merchandise for more customers, but the company has scaled back efforts not long after. This move mirrors the actions of Old Navy, which attempted to merchandise for a broader customer base, only to scale back not long after.
The past fiscal year has been challenging for Stitch Fix. The company reported a net loss of $207.1 million, a significant increase from the previous year's $8.9 million loss. Additionally, net revenue for the company fell 1.4% to $2.1 billion, and the cost of goods sold rose nearly 1%.
The company has also lost 370,000 customers in its most recent quarter, representing 9% of its active client base. This loss is a concerning development for the company, which has been struggling to maintain its customer base.
Despite these challenges, Stitch Fix is not abandoning its efforts to expand representation in fashion and make more sustainable apparel. The company has worked with Green Matters Natural Dye Company to manufacture clothing with collected rainwater and plant matter. This move aligns with the growing importance of sustainability and size-inclusivity to younger consumers.
Some of the name brands Stitch Fix sells, including Amour Vert and Liverpool, have size-inclusive offerings. However, there are no relevant search results available regarding the specific name brands offered by Stitch Fix that have size-inclusive products.
In an effort to support the affected employees, Stitch Fix is offering severance payments that increase with tenure, extended healthcare, recruitment resources, and other benefits. This compassionate approach underscores the company's commitment to its employees during this difficult time.
As Stitch Fix navigates these challenges, it remains to be seen how the company will continue to evolve and adapt in the competitive fashion industry.
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