In a significant shift to a small but influential retailer, upscale women's store Henri Bendel will stop selling clothes this summer. Stores will focus on accessories and beauty products, which are the more profitable areas of the business.
Henri Bendel, which is owned by Limited Brands, is also giving up one floor of its handsome store on Fifth Avenue in Manhattan.
Famed luxury goods purveyor Tiffany might look immune to the recession but actually they are in a world of trouble. "Net income fell to $31.1 million, or 25 cents per share, down from $127.4 million," for one thing; these costs are associated with store closing and with layoffs. So what's Tiffany's solution? More layoffs! "Tiffany plans to offer early retirement packages to 800 of its employees in the U.S., and cut 10% of its staff worldwide." Great plan.
Eyeglass maker Luxottica announced 100 or more store closings in response to the global economic slowdown. The impact of the store closings specific to the U.S. market was not disclosed. Luxottica, which makes Ray-Ban, Oakley and other popular brands, expects to close two to three percent of its doors as well as reduce inventory.
Handbag maker Lambertson Truex has filed for chapter 11 bankruptcy, citing reduced demand. A company executive said high-end spending had slowed, leading to a cash crunch. Lambertson Truex has closed two retail stores, while parent company Samsonite has kept its New York location. Lambertson Truex handbags can cost up to $18,000.
Regional jeweler Christian Bernard filed for Chapter 7 bankruptcy the day after Christmas. The company began its bankruptcy investigations prior to the holiday, and the filing says the chainlet's 15 stores "appear to be unsustainable."
