USA: Kellwood To Cut Warehouse, Distribution Capacity

Apparel maker Kellwood Co is to reduce its warehouse and distribution capacity in a move that will lead to pre-tax charges of $15 million ($9.4 million after tax) or $0.40 per share in 2002. In a statement, the $2.2 billion company said the global apparel market had shifted in favour of sourcing piece goods and finished product out of the Far East. At the same time, it said, "the downturn in consumer spending on apparel and consumer confidence has resulted in some excess capacity in our warehousing and distribution network.