Hartmarx makes significant adjustments
Casual and golf apparel producer Hartmarx Corporation has decided to “eliminate several lines of moderate priced tailored clothing, which will significantly adversely impact fourth quarter and full year results for 2007, but which are expected to better position the Company for an earnings recovery for the full year 2008," according to chairman and chief executive officer, Homi Patel.
It will terminate the DKNY Donna Karan New York men's tailored clothing license, effective immediately and will conclude its Perry Ellis tailored clothing license at the end of 2008. Other changes include the possible closure of an office/distribution facility in Buffalo, New York. Price increases for all tailored product lines have been introduced for autumn 2008 and it has made staff reductions in the procurement, selling and administrative areas.
Last week, the company named Michael Parker group president of HMX Tailored. He will report to Mr Patel and will play an important role in reorganising the segment. Mr Parker replaces Rich Biegel, who left the company in July 2007. He has 20 years experience in the tailored apparel and sportswear industries. Most recently, he served as vice president, national accounts at Peerless Clothing International and has also worked at Tommy Hilfiger sportswear, Lacoste Sportswear and Lanier Clothing.
“With these moves, we anticipate that each of the tailored clothing lines remaining at year-end 2008 will make a positive contribution in 2009,” said Mr Patel.
Hartmarx is expecting to report 2007 sales of $562 million.
