Bell helmets is laying off workers, closing its campus in Scotts Valley, California, and moving its remaining employees and operations to Irvine, California.
According to a regulatory filing with the U.S. Securities and Exchange Commission (SEC) by Bell’s parent company Vista Outdoor, the layoffs and facility move are part of a “$50 million cost reduction and earnings improvement program, which includes office closures, spending cuts, EBIT improvements and headcount reductions across our brands and corporate teams. The changes are being implemented in response to elevated retail inventory levels, rising interest rates and inflation, which have pressured our top and bottom lines and impacted our outlook for Fiscal Year 2024. The changes will help the Company compete in the current challenging economic environment and prepare for the separation of its Outdoor Products and Sporting Products segments into two independent, publicly traded companies, which is expected to occur in calendar year 2023 (“Separation”).
“Within the Company’s Outdoor Products segment, the Company is accelerating the merger of its Bell, Blackburn, Copilot, Fox, Giro, Krash and Raskullz businesses through leadership and facility consolidations. As part of these measures, the current Bell/Giro headquarters in Scotts Valley, California, will be closed effective September 1, 2023, with affected employees relocating to a revamped Innovation Center in the current Fox Headquarters in Irvine, California.”
The latest news follows Vista Outdoor’s dismal FY23 third quarter financial report and the departure of Vista Outdoor CEO Chris Metz, who was asked to resign by the Vista Outdoor Board of Directors.
During the FY23 Q3, which ended December 25, 2022, Vista Outdoor’s sales decreased by $40 million, gross profit declined 15%, gross profit margin decreased significantly, operating expenses rose 16%, earnings before interest and taxes (EBIT) were down 39%, and Fully Diluted Earnings per Share (EPS) dropped 44%.
