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industry insider | Sep 11, 2024 |
Annie Selke to lay off employees, shutter stores

Pittsfield, Massachusetts–based textile brand Annie Selke is shuttering its headquarters, closing its two retail locations, and laying off approximately 47 employees, including CEO Lori King. A document obtained by local public radio station WAMC indicated that the sweeping cuts would take effect at the end of the year. The brand’s parent company, Rugs USA, confirmed the news, describing it as a move to “sharpen [their] focus on business growth.”

According to a statement provided by a spokesperson from Rugs USA—a private-equity-owned wholesaler and e-commerce brand based in Cranbury, New Jersey—the company plans to keep the Annie Selke brand operational, moving it within it’s own existing enterprise footprint. At the end of this year, Annie Selke’s offices in Pittsfield, along with its Outlet and Lenox stores, will be closed. The spokesperson says the decision “does not impact customers or business contuinity; the Annie Selke brand, products, or channels we serve.”

The news comes roughly one year after Annie Selke laid off 40 to 50 employees following its acquisition by Rugs USA. At the time, the cuts were described as a move to consolidate roles and shift operations to the parent company’s New Jersey facilities.

According to emails obtained by local news source The Berkshire Eagle, Rugs USA CEO Alyssa Steele blamed this week’s layoffs and closures on a weak market for home decor and said that the company was “realigning teams under functional expertise with multiple brands served within a function, significantly revising the Marketing function, and rethinking and exiting from some of our initiatives and capabilities.”

The Berkshire Eagle reports that 30 Rugs USA employees were also let go as part of the cuts.

Annie Selke was founded in 1994 by Selke herself, who started the company from her dining room with an industrial sewing machine. In its early years it was a private-label manufacturer of linens for retailers like Eddie Bauer and L.L.Bean. Over time, Selke began selling to consumers directly and expanding into other categories.

“We have gone from an entirely wholesale-based business to essentially a multichannel retailer,” she told host Dennis Scully on a 2019 episode of The Business of Home Podcast. “We still have about 4,000 wholesale accounts, because that’s who brought me to the party and I always believe you take care of the people who brought you to the party. By the same token, with the advent of the internet, the only way to completely present your brand is to build your own vision.”

At the time, Selke’s brands employed 221, including a 50-person team in India. Following the acquisition by Rugs USA in 2023, a story describes Selke as retaining the role of “chief vision officer” but her day-to-day involvement in the business since the merger is unclear.

This story was updated on September 17 to include comment from Rugs USA.

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