Kellwood reshuffles Oakland Operation to focus on developing Koret brand
28 Jul '05
6 min read
"The decision to exit non-strategic businesses represents an important step in a series of initiatives that they believe will help re-establish Kellwood as a premier marketer of branded apparel and related soft goods," stated Kellwood's President and Chief Executive Officer, Robert C. Skinner, Jr.
"They expect that these actions will allow us to better focus their resources to further build their existing portfolio of lifestyle brands and effectively pursue additional growth opportunities in the marketplace. They will also reduce their operating divisions to 11 from 14 presently. This strategy, along with actions taken to upgrade their talent base, reduce cycle times and improve their assortments should result in better operating performance beginning in fiscal 2006."
The Company expects the costs associated with these actions to approximate $225 million before tax, $155 million after tax, or $5.51 per diluted share. Included in the charge is $55 million pre-tax, $41 million after tax, or $1.46 per diluted share to write off goodwill and intangible assets.
The Company noted that the restructuring efforts have already begun. The Company is hopeful that this plan can be completed over the next twelve months. Kellwood expects to book $110 million after tax of the restructuring charge, or $3.91 per diluted share in the second quarter and the remainder recorded principally in the second half of the year in accordance with generally accepted accounting principles ("GAAP").
marketing@alchempro.com
