NEW YORK -- The Donna Karan Corp. has closed its DKNY children's wear division, and is considering several options for continuation of the line.

The spring 1994 line was the last one shipped.

"It was extremely well received, but we felt there are better ways to do it," said Steven Ruzow, president of Donna Karan. "It's very hard for us to make the gross margins it requires and still give the consumer a good price/value relationship."

Karan started manufacturing a children's wear line for resort 1992 exclusively for the Neiman Marcus and Bloomingdale's catalogs. It began wholesaling the line to department stores in spring 1993. It showed its last spring line in September 1993 and bypassed summer and fall.

Ruzow said the company is studying the possibility of licensing the children's line, forming a joint venture or producing a catalog as a joint venture. A spring 1995 re-entry is being considered.

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