Despite the challenging economic climate and additional store closures, men’s specialty store chain S&K Famous Brands Inc. isn’t considering liquidation.
“Part of what you do [in a turnaround situation] is look at every option, including a sale, restructuring, bankruptcy and liquidation,” Joseph Oliver 3rd, chief executive officer, told WWD. “We made the decision that this is a viable go-forward business. We have no intention of liquidating the company.”
Credit sources last week said the Richmond, Va.-based chain was struggling with tighter credit and facing limited options as sales declined and losses mounted. In the second quarter, losses hit $4.1 million, or $1.85 a diluted share, from a deficit of $1.2 million, or 54 cents, in the year-ago period. Sales fell 7.3 percent to $33.7 million from $36.3 million in the period as same-store sales dropped 5.4 percent.
“We announced a restructuring in July,” Oliver said, “that included the closing of a number of unprofitable stores.” He said closing sales started at 37 stores about two weeks ago. This is on top of 19 stores that were conducting going-out-of-business sales at the end of the summer, when S&K operated 219 units in 26 states. S&K hired Alvarez & Marsal to assist in its restructuring efforts.
Oliver said additional stores may need to be shuttered: “We’ll see. We don’t know where the bottom is right now. Some of our stores are performing well and others are down 20 percent. If this economic situation continues into the spring, we may have to make some tough decisions. But we’re doing everything we can to move this business forward.”
Oliver pointed out that S&K’s thrust to attract a younger customer with more sportswear and casualwear is meeting with good response. And the company’s tuxedo rental business is also a bright spot.
“We’re optimistic S&K will be in the market for a long time,” Oliver concluded.
@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)