Liz Claiborne To Shut RI Facility As Part Of Restructuring
By Karen Talley, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Liz Claiborne Inc. (LIZ) is closing a Rhode Island
jewelry distribution center and shifting the business to another center as part
of the apparel retailer's slimming down efforts.
About 100 jobs will be eliminated as Liz Claiborne shuts the facility in the
second quarter of next year.
The move is being taken to "better align our distribution capabilities with
the realities of the current economic environment," Liz Claiborne spokeswoman
Jane Randel said.
Liz Claiborne had said in August it would be taking further steps to
streamline operations.
The retailer, which has been struggling with its own brand issues as well as
the recession, now has 12,500 employees compared with 18,000 at the end of 2006.
Earlier this month, Liz Claiborne posted a much wider-than-expected third-
quarter loss, part of a run of losses the retailer has been experiencing. Chief
Executive Bill McComb at that time stopped short of saying the company could
return to profitability next year, but did indicate that new plans for the Liz
namesake line, in which J.C. Penney Co. (JCP) will be the only U.S. department
store to carry and expand the brand, should allow that part of the business to
show earnings in 2010.
The company's own outlet stores could show a profit by late next year or soon
after as they sell more of the new Isaac Mizrahi-designed Liz line after
clearing out old product, McComb said.
Liz Claiborne shares are off 0.6% to $5.12.
-Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com
(END) Dow Jones Newswires
11-16-091138ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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