Apparel maker Phillips-Van Heusen Corporation today (28 May) said it will not renew its license agreements to operate Geoffrey Beene outlet retail stores - and will close the Geoffrey Beene outlet retail division by the end of fiscal 2008.

Around 25 of the 100 Geoffrey Beene stores will be converted to Calvin Klein outlet stores, the company said.

The move will lead to after tax charges of $15m, or $0.29 per share, relating to asset impairments, severance, inventory markdowns and lease exit costs.

Emanuel Chirico, chairman and chief executive officer, noted: "From a human resource perspective, this is a very difficult decision for the company."

He added: "For the current year, the division was projected to operate at break-even to a small loss.

"By converting a portion of the Geoffrey Beene store portfolio to Calvin Klein outlet retail stores, we will accelerate the growth of our most productive and profitable outlet retail division and more quickly reach our desired number of Calvin Klein outlet retail stores."

Phillips-Van Heusen stressed that the move will not affect its license for Geoffrey Beene brand dress shirts and men's sportswear, which has been renewed for an additional term to 31 December 2013.