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Looking for Liz Claiborne T-Shirts

Thursday 27th of August 2009 12:04:18 AM

If you are looking for Liz Claiborne designer t-shirts you might have to look a lot harder if the company goes through with its cost cutting plans. The company plans on cutting $100 million from its budget and that will mean changes in how the company works with department stores. The Chief Executive for Liz Claiborne said, “We fully understand that we must do much more than just cost cutting.”

Liz Claiborne produces a number of brands selling everything from t-shirts to dresses. Brands such as Mexx and Juicy Couture are popular but the company has had a quarterly loss for the last seven quarters. The expectations are that department store sales will continue to decline by as much as 25 percent through the rest of the year. The company has been able to survive the losses to date because it has had enough of a cash cushion to cover losses. Most of the cuts will be taken in the area of department store deliveries.

Some cost cutting measures have already been taken in the amount of $70 million during the first quarter of the year. The company’s second quarter loss was $82.1 million.

The current plan is to cut at least $25 million from department store Liz brands while continuing to pay down debt. In addition, another $25 million in cuts will be taken in the European Mexx operation. To generate new sales there are also plans to reduce Lucky Brand blue jeans prices to under $100.

The problems facing Liz Claiborne are the same problems many fashion brands are facing. The recession has had a severe impact on sales as consumers cut back on spending for non-essential items such as new clothing.

(c) Image by www.Barunpatro.com, www.sxc.hu/

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