Reply #42: Liz Claiborne to cut 500 jobs, take charges (close 20 stores)

[UpInArms]

http://www.marketwatch.com/news/print_story.asp?print=1&guid={51D19820-DF94-4C6D-9CF5-8D79041B15B3}&siteid=mktw

NEW YORK (MarketWatch) -- Apparel maker Liz Claiborne Inc. said late Tuesday said it would streamline its operations in a move to boost profits and better integrate acquisitions.

The New York-based maker of Sigrid Olsen, Ellen Tracy, and Juicy Couture brands, said the move included 500 job cuts and a $60 million charge, and expects to the plan to generate millions in annual savings from shares resources.

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Liz Claiborne plans to cut about 500 positions, or about 4% of its global work force, with "significant" staff reductions at the more senior levels of the organization. The company also said it will close or "repurpose" about 20 retail stores.

"While we applaud the difficult decision to reduce the workforce in order to enhance shareholder value, yesterday's restructuring announcement leads us to suspect headwinds may be stronger than previously indicated," said Morgan Keegan analyst Brad Stephens in a note to clients.

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