Claiborne Cuts Jobs, May Sell 16 Brands

U.S. fashion company Liz Claiborne Inc. said Wednesday it would cut 600 to 800 jobs and may sell 16 of its 36 apparel brands to cut costs and increase profits.

The apparel designer and marketer, whose namesake founder died June 26, said it expected the corporate overhaul to save $190 million over three years.

The job cuts represent 7 percent to 9 percent of Claiborne’s non-retail workforce, including significant senior staff cuts, the New York company said.

The brands Claiborne will try to sell, license or discontinue — which account for $800 million of its $5 billion in annual revenue — are Sigrid Olsen, Prana, Ellen Tracy, Dana Buchman, Mac & Jac, Kensie, Intuitions, C&C California, Enyce, Laundry, Tint, Stamp10, First Issue, Emma James, Tapemeasure and J.H. Collectibles, Claiborne said.

The brands on the hit list are ones we could bite off and grow within the time frame that the Street would need us to perform, Liz Claiborne Chief Executive Officer William McComb told The Wall Street Journal.

Investors could expect to see improvements in the company’s results next year, he said.

The company is separating itself into two operating groups, with direct-to-consumer retail generating about $2.2 billion and wholesale generating about $2.8 billion, it said.