The possibly soon-to-be private Hampshire Group Ltd. said Tuesday it will shed 75 jobs, or 24 percent of its global workforce, in an effort to maintain costs.
This story first appeared in the April 22, 2009 issue of WWD. Subscribe Today.
The reorganization will stretch between the company’s second and third quarters and is in response to reduced sales and other factors, Hampshire said.
The sweater and sportswear supplier is awaiting a Friday deadline on a tender offer from NAF Holdings II. If the deal is consummated, the Efrem Gerszberg-controlled investment group will merge into Hampshire on April 26.
Hampshire will also eliminate its 401(k) matching program, implement compensation reductions for senior-level employees and consolidate its New York locations.
The company expects the moves to account for $6.6 million in annualized savings. It will incur about $3.8 million in one-time costs as part of the reorganization. Hampshire lost $29.9 million in fiscal 2008 on revenues that fell 6.3 percent to $240.9 million.