NEW YORK — Maggy Siegel, president and chief executive officer of Judith Leiber LLC, is stepping down as chairman and will be replaced by Hal Kahn, former chairman and ceo of Macy’s East.

Siegel will retain her role as president and ceo and serve as a board member. Kahn, 59, had been an adviser to the board for the past two months.

A spokeswoman for Siegel, who could not be reached for comment, declined to say whether she has plans to exit the company.

“This is a work in progress,” the spokeswoman said. “Maggy will stay on to ensure there’s an appropriate transition. Hal will focus on select initiatives to be clarified at a later time.”

However, sources familiar with the situation said Siegel’s contract is up this month, and it is not expected to be renewed. It is unclear who would assume the president and ceo posts.

In a statement, Siegel said, “It has been an honor to have led the revitalization of the Judith Leiber brand and to have built such a great team and beautiful flagship. I am especially proud to have gotten Judith Leiber herself out of retirement and have greatly enjoyed our time together traveling around the country to meet so many special Leiber collectors.”

The announcement on Tuesday comes amid rumors that Leiber’s owner, Pegasus Capital Advisors, is looking to unload the brand due to poor performance.

Most recently, Leiber opened a 3,000-square-foot flagship on Madison Avenue here. A new location at the Wynn Resorts in Las Vegas is set to open in April.

Siegel joined Judith Leiber in 2003 from Chanel USA, where she oversaw fine jewelry.

Kahn, a Brooklyn native, retired from Macy’s East last year after 10 years at the helm.

This story first appeared in the February 2, 2005 issue of WWD. Subscribe Today.