EXHIBIT 99.1
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DESTINATION MATERNITY CORPORATION ANNOUNCES REDUCTION IN FORCE
Cost Savings of $4.0 million - $4.5 Million on AnnualizedRun-Rate Basis
MOORESTOWN, N.J. – (June 24, 2019)– Destination Maternity Corporation (Nasdaq: DEST) today announced a reduction in force (“RIF”) that is expected to generate cost savings of $4.0 million - $4.5 million on an annualizedrun-rate basis.
The reduction is part of the Company’s effort to become a more efficient and profitable organization.
As Destination Maternity is continuing to focus on a key item driven assortment, with more emphasis on evergreen product, the RIF will primarily impact the Company’s product pipeline teams.
“This reduction in force is a very difficult, but necessary step for the Company,” said Lisa Gavales, Chair of the Office of the CEO. “We are streamlining our teams, and sharpening our product offering to focus on the key items that are most important and relevant to our new moms and moms2be. While challenging, this is a critical step in helping to position the business as a more nimble and profitable organization in the future.”
Ms. Gavales added, “We would also like to express our appreciation to each of the employees impacted by this decision for their meaningful contributions to the Company. We remain committed to treating impacted associates with respect and support through this transition.”
The RIF is expected to result in aone-time severance charge of approximately $1.3 million - $1.5 million during the second quarter of 2019 with severance benefits paid out ratably. Customary transition assistance will be provided to affected employees.
About Destination Maternity
Destination Maternity is the leading designer and omni-channel retailer of maternity apparel in the United States, with the only nationwide chain of maternity apparel specialty stores, as well as a deep and expansive assortment available through multiple online distribution points, including our three brand-specific websites. As of May 4, 2019, we operate 998 retail locations, including 452 stores in the United States, Canada and Puerto Rico, and 546 leased departments located within department stores and baby specialty stores throughout the United States and Canada. We also sell our merchandise on the Internet, primarily through our Motherhood.com, APeaInThePod.com and DestinationMaternity.com websites. We also sell our merchandise through our Canadian website, MotherhoodCanada.ca, through Amazon.com in the United States, and through websites of certain of our retail partners, including Macys.com. Our 452 stores operate under three retail nameplates: Motherhood Maternity®, A Pea in the Pod® and Destination Maternity®. We also operate 546 leased departments within leading retailers such as Macy’s®, buybuy BABY® and Boscov’s®. Generally, we are the exclusive maternity apparel provider in our leased department locations.
Forward-Looking Statements
The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding earnings, net sales, comparable sales, other results of operations, liquidity and financial condition, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company’s financial performance