Henri Bendel closing: Small piece of bigger problem at L Brands

Roman Schwartz
September 17, 2018

Bendel, like other brick-and-mortar retail brands, have been struggling with sluggish sales due to the uptick of online retailers in recent years.

A luxury brand with a very long history in NY is coming to an end.

The analysts noted that L Brands' Victoria's Secret and Pink businesses are promoting heavily, but that the consumer is not responding.

L Brands still expects Henri Bendel to take in $85 million in revenue for 2018, and will remain open until January 2019.

Bendel only accounts for a small portion of L Brands' sales. In 1913, the brand became one of the first luxury retailers to open a flagship store with an "upper FIfth Avenue address", according to its website. L Brands acquired Henri Bendel in 1985 and led its expansion into 11 states, the report said.

The company cut its full-year earnings forecast in August, blaming falling demand for its PINK line of lingerie amid competition from brands such as American Eagle Outfitter's Aerie.

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Henry Bendel was a women's hat maker from Lafayette, Louisiana.

"We are committed to improving performance in the business and increasing shareholder value", stated Les Wexner, chairman and CEO of L Brands, in a news release issued yesterday.

Its parent company, L Brands, said in a statement that the move was needed to improve the company's overall profitability and to focus on its much larger brands that "have greater growth potential".

Associates staying with the business through January will be offered retention bonuses.

If you need us, we'll be purchasing all the Bendel accessories we can.

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