The closures are to take place by the middle of the year, and management expects they will cost the company between $17 million and $22 million. The concept, which Liz Claiborne acquired in 1999, has posted losses for years, says William McComb, the company's chief executive officer.
About a dozen of the closed Sigrid Olsen stores could become home to one of Liz Claiborne's "direct brand" concepts, which are Juicy Couture, Kate Spade, Lucky Brand Jeans and Mexx. The company is focusing on the expansion of those concepts while it reviews its other operations, referred to as "partnered brands."
Meanwhile, Liz Claiborne is selling its C&C California and Laundry By Design clothing brands to Perry Ellis International for $37 million. Also as part of its brand review, management has decided to hold on to the Enyce apparel concept.
During its most recent quarter, net sales at direct-brand stores were $629 million, an 18% increase from the same year-ago period. Partnered brands' sales were $634 million, an 18.8% drop.
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