Along with growth, the hope is the $225 million restructuring plan will yield cost savings and increase operating margins for existing businesses to 9 percent. Besides implementing corporate and supply chain cost reductions totaling about $90 million by 2012, Kellwood streamlined its women's sportswear business in September, when it was faced with a $66.3 million second-quarter loss. It went from seven to three sportswear divisions: Lifestyle Alliance for moderate brands, including Sag Harbor, Koret and Briggs New York; Designer Alliance for most of Kellwood's better-and-above price point brands, including Calvin Klein women's better sportswear, ck Calvin Klein women's bridge sportswear, O Oscar, David Meister and Hollywould, and Modern Alliance for junior and contemporary lines, including XOXO, My Michelle and Vince.
Many veteran Kellwood executives also exited, including Steven L. Ruzow, president of Kellwood's Calvin Klein division and formerly the president of Kellwood Womenswear, and Paul A. Robb, ceo of Kellwood's Lifestyle Design Group, which included O Oscar and Sag Harbor.
Phat Fashions, acquired in 2004, also had its share of changes. Russell Simmons left, and Kimora Lee — who launched the higher-end KLS Collection line — was promoted. Phat Farms men's division became solely a licensing model, and Phat Fashions will be reported in the company's women's sportswear segment.
A New Regime at Liz
It's been quite a year for Liz Claiborne Inc.
Under William L. McComb, a former group president at Johnson & Johnson who replaced Paul Charron as chief executive officer in November 2006, the $4.99 billion firm split between "partnered" and "direct" brands, put 16 of its brands up for sale and shook up management.