Kit And Ace Shutters Detroit, All U.S. Stores

DETROIT, MI — Spendy “athleisure” apparel store Kit and Ace has closed all of its U.S. locations, including the store on Woodward Avenue in downtown Detroit, so it can focus on its online and Canadian businesses. Launched in 2014 by Lululemon founder and ex-CEO Chip Wilson and his family, Kit and Ace sells clothing designed to be worn in and out of the gym and is known for its “technical cashmere,” a washable blended fabric of mostly viscose, 10 percent elastane and 9 percent cashmere.

The 32 stores the luxury streetwear chain said it is closing are in the United States, the United Kingdom and Australia. Nine stores will remain open in Canada. An undisclosed number of jobs were eliminated.

In a widely circulated statement, Wilson said the decision reflects the realities of a changing retail marketplace.

“We recognize the traditional world of bricks and mortar retailing is changing,” said Wilson, whose wife, Shannon, founded the chain. “We believe in the business model for Kit and Ace. Going forward, we will be a stronger company. Fewer stores require fewer people. We remain deeply grateful for the creativity and commitment of those leaving the company and thank them for their valuable contribution.”

Hold It All Inc., the Vancouver-based holding company that owns Kit and Ace, faced an immediate public relations nightmare as employees learned they were losing their jobs through social media posts. A post on Facebook told customers that all but the Canadian and online stores would close, but encouraged them to remain loyal.

“To our global guests: stay in touch,” the post read. “You can still shop our entire collection and buy the clothes you love at kitandace.com.”

The closures come two months after Wilson said he would expand a program piloted at a Kit and Ace store in California to rebrand the chain as a wellness-infused company that offered free sparkling water and meditation coaching.

In September, Kit and Ace said it was closing about a quarter of its stores and laying off about 20 percent of its 280 employees in the Vancouver head office. Jobs of about 35 employees had been eliminated earlier in 2016.

Both moves confirmed speculation that Kit and Ace had grown too quickly. Within 14 months of its founding, the fashion retailer had 61 stores in five countries, and employed around 700 people.

Photo by Paul Marotta/Getty Images Entertainment/Getty Images for Kit and Ac3