US: Blue Holdings to axe jobs, close stores
High-end fashion jeans and denim apparel maker Blue Holdings Inc is to discontinue its underperforming Life & Death brand, reduce its workforce by approximately 25%, and close its two retail stores as it takes steps to turn around its business.
The Commerce, California-based company says it will exit the underperforming brand and close its two existing retail stores in Los Angeles and San Francisco within the next 60-90 days.
The firm will also reduce its workforce by 35 employees, or approximately 25% of its full-time staff, by the end of October.
Glenn S Palmer, the company's chief executive officer, said: "By narrowing the scope of our operations, we believe we will accelerate our core brands and grow our revenue base.
"In connection with these planned restructuring activities, we anticipate projected savings of approximately $2.8m in 2008, and $750,000 in 2007."
Blue Holdings, whose brands include Antik Denim, Yanuk, Taverniti So Jeans and Faith, saw its second quarter profit plunge to $7,000 from $1.7m in the prior year period, as sales nearly halved to $8.4m.
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High-end jeans and denim apparel maker Blue Holdings Inc has signed two new licensing agreements for its Antik Denim and Yanuk brands....
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