BUSINESS | Diane Von Furstenberg To Pay Laid Off Employees ‘In Full’

MILAN | ITALY – Iconic fashion designer Diane von Furstenberg wrote on Instagram that laid-off employees of her struggling company will be paid in full including severances.

The statement was in response to a New York Times article that was written about the closing of her company’s clothing stores which laid off 60 percent of the retail staff in the United States, Britain and France, and the filing of Chapter 11-style bankruptcy in Europe in relation to the coronavirus pandemic.

The report detailed how creditors have been complaining about unpaid bills and how some employees have not received severance.

‘In reference to the NYT article, I would like to clarify a few things and not be misunderstood. We intend to pay all employees in full, including severance. I also want to mention that we have taken no government funds throughout’, she wrote in an Instagram post on Monday, which showed a snapshot of the printed newspaper article.

The article, which was originally published online Wednesday, July 22, reported that several DVF employees had been laid off without severance pay and even cited an emotional but now-deleted Instagram comment that circulated among current and former staff about workers being furloughed without salary.

‘Some of us are struggling to pay bills, feed our families and enjoy this time of resetting you speak of’, a part of comment read – a direct quip at the 73-year-old designer’s April 13 post about the pandemic forcing the world to pause. She advised  her followers at the time ‘to take advantage of it, to eventually reset’.

In her latest post, though, von Furstenberg explained that her company had to ‘close many stores and shrink operations’ to survive.

FOX Business reached out DVF for clarification on hot the fashion house intend to pay back its laid-off employees. A response was not immediately issued upon request.

However, Von Furstenberg showed optimism in her Instagram post about the article.

‘We will continue to design and deliver the global community of Women InCharge our timeless fashion, our exclusive prints and our honest message’, she shared. ‘I want to thank my faithful consumers and partners that have supported me so long…I will not disappoint you. Owning my vulnerability these hard times and learning from it will make me and my brand stronger’.

DFV has reportedly faced financial challenges since 2015 but the company is currently restructuring.

It is likely that won Furstenberg’s 21-year-old granddaughter Talita will be a part of the brand’s revival plan, according to The New York Times. A capsule collection named ‘TVF for DVF’ was launched in 2019 as a way to introduce the young family member into the company.

The famous designer’s billionaire husband Barry Diller has also been involved in keeping DVF alive.

---