Revlon Inc. is taking another stab at cutting costs.
After a two-year effort to rein in spending, which included shrinking its workforce, Revlon said it will eliminate 400 positions and flatten its management structure as part of a newly announced restructuring plan, effective immediately.
“Over the past two years, we’ve built improved and more efficient processes and workflows, which now allow us to take this step to reduce annualized costs by approximately $30 million,” stated newly installed president and chief executive officer Alan Ennis.
The plan involves consolidating certain functions, reducing layers of management, streamlining support functions and further consolidating Revlon’s office facilities in New Jersey. To complete these actions, Revlon expects to take a $20 million charge, which includes $17 million related to severance and other termination benefits and $3 million related to the consolidation of the New Jersey facility.
The restructuring marks Ennis’ first major undertaking since taking the helm in late April from David Kennedy, who moved up to the role of vice chairman, and will also serve as a senior executive vice president at MacAndrews & Forbes Holdings Inc., Revlon’s largest shareholder and the investment firm owned by Ronald O. Perelman.
Ennis’ early efforts are reminiscent of Kennedy’s when he became ceo in September 2006 after a management shake-up. At the time, Kennedy took swift action to change the company’s course, including reducing head count and focusing the bulk of the firm’s attention on its $1 billion global flagship brand, Revlon, and setting financial benchmarks.
Revlon is also gearing up for a challenging second half, as the recession lingers and mass retailers continue to scale back inventory.
“As a result of these factors, combined with the unfavorable impact of foreign currency fluctuations and pension expense, not including charges related to our organizational restructuring actions, we anticipate significant negative impact on net sales and profitability in our second quarter 2009 results as compared to the second quarter 2008,” said Ennis.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)