Transition Services Helps National High-End Retailer Implement a SUB Plan In Under Two Weeks


The client is a national high-end retailer that’s been in business for over 100 years. They have a customer-centric focus and a commitment to bringing high-end fashion into homes across the country, with over 50 locations totalling 3,000+ employees.


In 2008 the client was struggling to maintain solvency. Consumers began shopping less as the recession hit, resulting in millions of dollars in lost revenue. The retailer was acquired, and the new parent company began planning a significant restructuring as part of a broad consolidation strategy created to offset revenue loss. Store closures and national workforce reductions were inevitable, leading to a substantial downsizing of the workforce, eliminating employees from multiple job tiers throughout all company divisions.


The client was referred to Transition Services two weeks prior to the targeted implementation of the first round of layoffs. They were confident in their decision to move forward with a TSI-administered SUB Plan based on TSI’s reputation and ability to implement a SUB Plan tailored to their needs and values quickly during a truncated timeline.

During the restructuring, Transition Services was responsible for processing the benefits of terminated employees, and served as the main point of contact for these individuals from the time they found out they were being laid off to the expiration of their benefit period. This included:

  • Supporting participants with claiming state Unemployment Insurance (UI)
  • Tracking participants’ unemployment status and eligibility for benefits
  • Communicating directly with HR and payroll to ensure seamless processing


The client was able to meet their two-week target implementation goal with TSI’s support and partnership, and achieved savings of $3,005,677 in the first 12 months compared to traditional severance.

The benefit of working with Transition Services was measurable to the employees as well. The average benefit awarded was 10.5 weeks, and the average benefit utilized was 9.1 weeks – an 87% utilization rate, bridging these individuals to their next employment opportunity

The Numbers: First 12 months

  • 765 participants paid
  • 6,675 benefit weeks paid
  • Average savings per participant: $3,929
  • Average cost per participant: $5,768
  • Overall percent savings: 41%

The Numbers: 2008-2015

  • 1,003 participants paid
  • 9,175 benefit weeks paid
  • Average savings per participant: $4,503
  • Average cost per participant: $6,474
  • Overall percent savings: 41%


A Supplemental Unemployment Benefits Plan administered by Transition Services provided lasting impact far beyond the initial engagement. 238 more participants were enrolled in the program after the first 12 months, providing an additional $1,510,335 in gross savings. These terminations were not part of large restructurings, but rather natural layoffs in line with normal business cycles and the national average. Because the client already had a SUB Plan in place they were able to continue achieving savings even on low volume layoff activity year over year.


To learn more about how your organization can partner with Transition Services to implement a SUB Plan, request a consultation today.


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