In tandem with a major leadership shift at the CEO level, Wolverine on Thursday announced the planned closure of its Boston headquarters by the end of the year and the consolidation of its offices across the U.S. to its Rockford, Mich., campus.
The announcement came as Wolverine Worldwide announced sagging results for the second quarter, as well as the sudden exit of CEO Brendan Hoffman. The company named Christopher Hufnagel, formerly president of the company, as president and CEO.
According to Hufnagel, the U.S. office consolidation was announced earlier this week and is meant to help “drive increased collaboration” and the sharing of best practices across teams and brands.
“We fundamentally think that having all of our footwear brands under one roof here in Rockford is the right decision for the company,” said Hufnagel in a call with analysts on Thursday. “The ability to find synergies, share best practices, use common tools and implement a consistent playbook, I think makes a lot of sense.”
He added that Wolverine is planning to maintain a “creative hub” in Boston to capitalize on the talent in the city, which he described as an “epicenter” for product designers, developers and marketers.
Wolverine’s Boston office housed the company’s Sperry, Saucony and Keds brands since it acquired them in 2012, as well as its Kids Group. Wolverine divested its Keds business late last year and recently announced its decision to explore strategic alternatives, including a sale, for its struggling Sperry brand.
Wolverine’s Richmond, Ind., office employs more than 200 people in consumer services, dealer services, shared services and inside sales. It is unclear if this center will also be impacted.
Wolverine did not immediately clarify how many employees would be affected by the Boston campus closure and general consolidation.
In December, Wolverine began laying off an undisclosed number of workers. And in March, the company said it was preparing to lay off employees in its Sweaty Betty brand and announced other changes to improve the business, such as consolidating office space in London and having Sweaty Betty report into the company’s London-based International Group, which oversees business outside the U.S. and is headed up by Isabel Soriano.
