Coldwater Creek restructuring to help save $20-25mn

30 Oct '13

2 min read

Coldwater Creek Inc announced a restructuring and cost reduction program that is expected to generate $20 to $25 million in pre-tax savings in fiscal 2014. This program is designed to improve the financial and competitive position of the Company by streamlining the organization, reducing expenses, and positioning the Company for enhanced efficiency and profitability. As part of this restructuring initiative, the Company has reduced its full-time corporate workforce expense by approximately 20%.

"The decision to downsize our workforce, in conjunction with our other cost reduction initiatives, was a very difficult one. However, we believe that it is a necessary step for the long-term success of the Company as we strive to right-size our infrastructure to adapt to changes in our business," said Jill Dean, President and Chief Executive Officer of Coldwater Creek. "We appreciate the many contributions of all our employees, and we will provide support to those affected during this transition period."

Coldwater Creek continues to make progress on its previously announced operational initiatives involving inventory, expense management, and store optimization. The Company expects to continue to realize further meaningful benefits from these strategies.

The Company expects to incur a pre-tax charge of approximately $3.0 million for severance and other expenses associated with the restructuring program in the fiscal third quarter of 2013.

Coldwater Creek is a leading specialty retailer of women's apparel, jewelry, and accessories. The Company was founded in 1984 in Sandpoint, Idaho, and sells its merchandise through premium retail stores across the country, online, and through its mobile applications.

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