Women's wear chain Cache Inc is planning to close its Lillie Rubin business and launch a new luxury line called Cache Luxe in its place.

The company intends to convert 17 of its 39 Lillie Rubin locations to Cache Luxe stores, and two Lillie Rubin locations to Cache stores.

The remaining Lillie Rubin locations will be closed by the end of the fiscal third quarter, incurring a pre-tax charge of US$4.5m.

The Cache Luxe concept will feature a selection of casual and evening apparel and accessories at higher price points.

Brian Woolf, Cache's chairman and chief executive officer, said Lillie Rubin's results have negatively affected the company's earnings for the past two years and the decision to launch Cache Luxe will enable it to "focus our efforts on the significant growth opportunities offered by our Cache brand."

At year end, the company currently expects to operate 300 Cache and Cache Luxe locations.