Phillips-Van Heusen Corporation announced it has decided not to renew its license agreements to operate Geoffrey Beene outlet retail stores and will close its Geoffrey Beene outlet retail division by the end of fiscal 2008.
The expiration of the retail license agreements will not affect the Company's license agreement for Geoffrey Beene brand dress shirts and men's sportswear, which has been renewed for an additional term ending December 31, 2013.
The Geoffrey Beene outlet retail division, which currently operates approximately 100 stores, is expected to substantially complete its liquidation by the end of fiscal 2008. Approximately 25 stores will be converted to Calvin Klein outlet retail stores, with the remaining stores being exited.
The Company expects to record after tax charges of approximately $15 million, or $0.29 per share, which will be recognized over the balance of the current year. The charges relate to asset impairments, severance, inventory markdowns and lease exit costs.
Emanuel Chirico, Chairman and Chief Executive Officer, noted, "From a human resource perspective, this is a very difficult decision for the Company. We are working to place as many of our Geoffrey Beene associates as possible into positions within our other operating divisions."
Mr. Chirico continued, "The closing of our Geoffrey Beene retail division in no way bears on our commitment to our Geoffrey Beene wholesale dress shirt and sportswear businesses. Geoffrey Beene remains the number one designer dress shirt brand in the U.S. and is an important component of our stable of brands."
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