Lillian Vernon Corp., Rye, NY, will cut 40 jobs, consolidate its Las Vegas call center into its Virginia Beach, VA, call center, and take a restructuring charge because consumer spending has fallen. Inventory has also been reduced by 9%.
The job cuts represent 12% of its workforce. The restructuring charges of approximately $1.5 million after tax is expected to place net income and earnings per share for the current fiscal year at break even, if not less. Last year, the company earned $0.69 a share, or $6.3 million.
Last December, Lillian Vernon predicted that earning would be 40% to 50% lower than last year.
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