Lands’ End, Dodgeville, WI, will eliminate 94 of the 888 salaried positions in the company; liquidate the Willis & Geiger division; and close three of its 19 outlet stores.
According to the cataloger, the restructuring came about because Lands’ End’s professional staff grew 58%, while its sales only grew 35% over the past four years. The firm hoped that a leaner “more efficient” operation will help Lands’ End return to the profitability levels it had enjoyed in previous years.
The costs of these changes will be included in a restructuring charge to be taken in the fourth quarter of fiscal 1999, ending Jan. 29.
While some of the eliminated positions will be the result of attrition, approximately 60 employees will be leaving the company. They will receive enhanced severance packages, including outplacement services.
Willis & Geiger is being liquidated because Lands’ End claims a suitable buyer could not be found. The outlet stores are being closed because the cataloger has found that it is more and more effective to liquidate overstocks using the Internet and print media.
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