VF Corp tackling IT hack, fulfilment operations disrupted

Fashion retail conglomerate VF Corporation has said that it has “detected unauthorised occurrences on a portion of its information technology (IT) systems” that have impacted a number of its operations.

In a filing, the group noted that while it immediately took steps to contain and assess the issue, including shutting down some of its systems, the actor had disrupted operations by encrypting some IT divisions and stole data from the company, including personal data.

VF added that it was working to bring the impacted portions of its systems back online and implement alternatives for offline operations with the goal of reducing disruption.

While retail stores remain open and customers can continue to place orders on most of the group's brand e-commerce sites globally, the company said it was “experiencing certain operational disruptions” and therefore its ability to fulfil orders is currently impacted.

The full scope and nature of the incident are not yet known, yet VF anticipates that it is “likely to have a material impact on the company’s business operations until recovery efforts are completed”. In terms of its financial condition, the company was currently unable to determine if the incident was “reasonably likely” to materially impact results.