Calvin Klein announces it is closing its ready-to-wear business
The brand will be focusing on its denim and underwear lines
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Your support makes all the difference.American fashion brand Calvin Klein has announced it is closing its ready-to-wear business.
Instead, the label will focus on its existing categories, including denim and underwear, which are produced by third party licensing partners.
A total of 50 employees in the New York office and 50 in the Milan office have also been let go, with the Italian hub set to close in due course, WWD reports.
The news follows the unexpected departure of Calvin Klein’s creative director Raf Simons at the end of 2018.
The designer, who changed the name of the runway portion of the business from Calvin Klein Collection to Calvin Klein 205W39NYC, prematurely ended his contract.
The decision came in the wake of comments made by the CEO of parent company PVH Corp, Emanuel Chirico, who said he was “disappointed by the lack of return on our investments in our Calvin Klein 205W39NYC halo business".
Following Simon’s exit, Calvin Klein said it had plans to rebrand the newly-named line, revealing that it was looking for a successor while parent PVH Corp. invested close to $70 (£53) million.
Despite revenue being up ahead of Simons' arrival in 2016, more than seven per cent from the year before, Calvin Klein recently revealed that its ready-to-wear line has always been a costly venture.
In 2018, PVH announced its pre-taxes and interest earnings fell to £92 million, from £108 million a year earlier, something it claimed was mostly due to increases in "creative and marketing expenditures".
In January, the company revealed plans to close the doors on its flagship at 654 Madison Avenue and confirmed that it would not be showing at New York Fashion Week in February.
In addition to the closure of the brand's runway category, Michelle Kessler-Sanders, president of Calvin Klein 205W39NYC and Calvin Klein by Appointment, will be leaving the company.
However, Kessler- Sanders will stay on through June to help close down the business and may continue to work in an advisory capacity.
Steve Shiffman, chief executive officer of Calvin Klein Inc, will remain in his position and will oversee the changes.
Reports have also suggested that Calvin Klein will continue to create “aspirational” products, possibly along the same lines as fellow American brand Tommy Hilfiger, which is also owned by PVH Corp.
Hilfiger currently travels across a number of destinations, including Los Angeles and London, with its successful “see-now, buy-now model”, staging fashion shows that feature collaborations with celebrities such as Gigi Hadid and Zendaya.
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