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Thursday, May 08, 2008
The Kellwood Shakeout: Search Said to Be On For New CEO at Vendor
Published: Thursday, May 08, 2008
NEW YORK — Another major vendor might be in line for a management change.

According to sources, Sun Capital Securities Group LLC, which acquired Kellwood Co. in an embattled takeover in February, has hired Russell Reynolds Associates Inc. to search for a replacement for Kellwood chairman, chief executive officer and president Robert C. Skinner Jr.

A spokeswoman for Russell Reynolds said the firm does not comment on searches, and neither Jason Bernzweig, vice president of Sun Capital Partners, nor Skinner returned a phone call Wednesday seeking comment.

Kellwood would be the fourth major apparel conglomerate to change its ceo in the last 16 months: William L. McComb succeeded Paul Charron at Liz Claiborne Inc. in January 2007, Wes Card took over for Peter Boneparth at Jones Apparel Group Inc. in July and Mackey McDonald was succeeded by Eric Wiseman at VF Corp. this past January.

It's no surprise Sun Capital, which acquired Kellwood in February for $762 million, would want to select its own ceo to turn around the troubled $1.6 billion vendor.

Since assuming the ceo role in 2004, Skinner, 52, has attempted to recast St. Louis-based Kellwood from a moderate manufacturer to a brand-focused marketing enterprise. During his tenure to date, Kellwood has exited several non-strategic businesses and purchased companies such as Vince, Hollywould, Hanna Andersson and Royal Robbins — firms with retail expansion potential, but little synergy. Further, Kellwood's attempts at launching better-price lines such as O Oscar and Calvin Klein have met with disappointing results in a dramatically consolidating industry.

Kellwood faltered with its initial moderate launch of O Oscar in fall 2004 and then pulled the plug in 2005. The brand relaunched for fall 2007 as an exclusive better-priced line with Macy's Inc., but sales underperformed and the collection was terminated last month. Sources have indicated Kellwood's licenses with Phillips-Van Heusen Corp. for the Calvin Klein better and bridge lines could be the next casualty when they expire in 2012. PVH has admitted it's not pleased with the performance of the collections.

Also last month, Kellwood shuttered its Liz Claiborne brand suits and dresses line, and on Monday, it was learned that Kellwood closed its moderate dress business. Sources anticipate that once Sun reviews the company's operations more critically, additional closures may occur.
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Robert C. Skinner Jr.