GREENSBORO, N.C. -- Greensboro-based Wrangler parent company VF Corp. -- as we know it -- is leaving Greensboro, but a new spin-off from the parent company will take its place, according to a news release.
The corporation announced Monday that VF Corp. will become two separate companies.
One will keep the name VF Corp. and serve as home to The North Face®, JanSport®, Smartwool®, Altra® and Eagle Creek® brands. This company will move to Denver.
“Locating these brands, along with select VF leaders, at the base of the Rocky Mountains will enable us to accelerate innovation, unlock collaboration across brands and functions, attract and retain talent and connect with consumers,” said Steve Rendle, Chairman, President and Chief Executive Officer in a news release.
Rendle will continue to lead VF Corp.
The other company has not yet been named, but is currently referred to as NewCo. This new company will locate in Greensboro. The Wrangler® brand will fall under NewCo and will remain in the Gate City.
As part of this split, NewCo will become the parent of the Lee® brand which will move to Greensboro from Kansas City.
The company announced that NewCo's CEO will be Scott Baxter and the CFO will be Rustin Welton, effective upon the completion of the transaction.
“Scott is an extremely talented leader who has a long track record of success, which includes leading the Jeans business from 2011 through 2015, a period during which the business grew at a mid-single-digit rate,” Rendle said. “There’s no one more qualified and appropriate to serve as CEO than Scott. I am confident he will do an exceptional job as CEO of NewCo.”
Rendle stated that he expects employment in the Greensboro area to stay where it is.
“We’re proud of our Greensboro, N.C., roots and remain committed to the community, including a strong ongoing employment presence," he said. "Combined with the relocation of the Lee® brand from Kansas City and the establishment of a major new public company with Greensboro headquarters, we expect that total VF and NewCo employment in the area will remain at current levels.”
Greensboro Mayor Nancy Vaughan issued a statement following the announcement.
“On behalf of the City of Greensboro, I want to thank VF Corporation for calling Greensboro home for the past 30 years," Vaughan said. "The impact VF has made on this community is immeasurable and that will continue as it will keep a number of its teams here in its Greensboro office. We are happy though that VF will keep its Wrangler® brand in Greensboro and it will be joined by the Lee® brand, who will move its headquarters to Greensboro from Kansas City. Wrangler® and Lee® will form a new company, headquartered in Greensboro, now being referred to as NewCo. We look forward to a long relationship with this new venture.”
VF describes the new VF Corp. as a global apparel and footwear powerhouse and the NewCo as a global leader in denim, holding VF's Jeans and VF Outlet businesses.
The corporation aims to finish the separation in the first half of 2019.