Vera Bradley last week announced a new streamlined corporate structure and full acquisition of bracelet brand Pura Vida. As a part of the reorganization, the company has eliminated the positions of Vera Bradley Brand President Daren Hull, Chief Creative Officer Beatrice Mac Cabe, and Chief Revenue Officer Mary Beth Trypus. Pura Vida Co-Presidents Griffin Thall and Paul Goodman will also leave the company. Alison Hiatt is joining the company as chief marketing officer to oversee digital marketing, customer data, and e-commerce. Vera Bradley will acquire the remaining 25 percent interest in Pura Vida that it doesn’t already own for $10 million.
Total Retail’s Take: Vera Bradley’s new president and CEO, Jacqueline Ardrey, is making big changes in the third month of her tenure. According to the company press release, the shakeup is designed to drive cost savings, add more focus on marketing and merchandising, and position the brand to deliver steady top- and bottom-line growth.
“These most recent organizational changes will produce annualized savings of over $2 million, on top of the $25 million of cost reductions previously identified and largely realized in fiscal 2023, which should position us to be a stronger, more nimble organization,” said Ardrey.
The start of the new year has seen companies across all industries making changes and cutting costs in a continually uncertain economic environment. Vera Bradley was already on the hunt for more opportunities to trim expenses, including closing stores. The company shuttered 10 full-line stores in 2022. Vera Bradley saw revenues and profits shrink in the third quarter. The leadership shakeup and the full ownership of the Pura Vida brand is taking the business in a different direction in 2023.
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