Home / Knowledge / News / Apparel/Garments / Ann Taylor expands strategic restructuring program
Ann Taylor expands strategic restructuring program
08
Nov '08
AnnTaylor Stores Corporation announced additional actions designed to further reduce the Company's cost structure and enhance its operational efficiency. These actions, which include an organizational streamlining announced, build upon the Company's multi-year strategic restructuring program first announced in January 2008. The Company also reduced its guidance for the third quarter of fiscal 2008.

Kay Krill, Ann Taylor President and Chief Executive Officer stated, "Following a solid first half performance, during which we effectively navigated a difficult economy, the dramatic deterioration in both the financial markets and the macroeconomic environment in September and October has put additional pressure on the retail industry, in general, and the women's apparel sector, in particular. As a result, third quarter financial results are tracking well below our previous expectations."

Ms. Krill continued, "We are moving more aggressively to accelerate our cost savings initiatives and to ensure our organization is appropriately structured for a recessionary environment. Savings from our January restructuring program are now expected to exceed previous estimates and, combined with the actions announced today, we expect to further improve our cost structure and position the company well for when the economy improves."

"We are also continuing to very carefully manage our expenses and inventories, and we are preserving our cash. During the third quarter, we did not purchase shares under our existing share repurchase authorization and, in this regard, we plan to continue a conservative approach. In addition, we will be significantly scaling back capital spending in 2009."

"With the benefit of a strong, debt-free balance sheet and approximately $295 million in available liquidity, including more than $80 million in cash, we are well positioned to support our brands and focus on strengthening our underlying business, even as we take aggressive steps to reduce our cost structure."

Under the expanded strategic restructuring program, which includes the organizational streamlining announced today, the Company expects to generate total ongoing annualized savings of $80-$90 million over the three-year program period, compared to the $50 million previously anticipated. Approximately $35 million of these savings are expected to be realized in fiscal 2008.

Total pre-tax restructuring costs over the three-year period are now expected to be in the range of $65-$70 million. These costs include the $40-45 million originally anticipated under the January program, plus incremental costs of approximately $12 million associated with the actions announced today, as well as charges totaling approximately $12 million related to additional non-cash write-down of assets associated with the Company's store closure plan announced in January. Approximately $30 million of the one-time costs associated with the program are expected to be incurred in fiscal 2008.


Must ReadView All

Sanjay K Jain, managing director, TT Ltd

Textiles | On 21st Sep 2017

TT’s Sanjay Jain elected new chairman of CITI

The Confederation of Indian Textile Industry (CITI), the apex body...

Textiles | On 21st Sep 2017

NRF urges US lawmakers to lower corporate tax rates

The National Retail Federation (NRF) has written to the US Senate...

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search