Global Brands Group (GBG) has cut 140 U.S.-based sourcing and product development jobs, moving those positions to its Hong Kong headquarters amid a broad restructuring that sharpens focus on its on top-performing licensed brands, CEO Rick Darling said in releasing year-end earnings.

Those brands include Calvin Klein (footwear, licensor PVH Corp.), Tahari (footwear and apparel, Bluestar Alliance) and Jones New York (footwear and apparel, Authentic Brands Group) as well as GBG’s own Aquatalia label, Darling said.

At the same time, GBG also is trimming sourcing and product development positions from five European offices, also shifting those responsibilities to Hong Kong. The goal was to bring those functions closer to GBG factories in Bangladesh, China, Indonesia and Vietnam.

“The goal is to maximize our top [licensed] brands while we develop some of the more emerging brands” such as AllSaints (brand owner Lion Capital), Spyder and Frye (ABG), said Darling.

The moves follow GBG’s restructuring its business to focus on wholesale, where Macy’s is its largest customer for Calvin Klein footwear, and brand management, which includes joint ventures with Creative Artists Agency (CAA-GBG) and soccer player David Beckham’s Seven Global.  GBG sold its children’s apparel business to Centric Brands last fall for $1.2 billion and its children’s business in China to the Fung Group for $20 million in December.

The restructuring and sales of some businesses has taken GBG from $4 billion in annual sales to $1.51 billion.  As recently as 2017, it had targeted $5 billion in sales by 2020, but carried more than $1 billion debt, which now stands at $174 million.

“With this restructuring GBG is in a position to start to grow the business in the future,” Darling said.  “We have been successful in taking out expenses from the business fairly quickly.”

Annual loss narrowed to $400 million from $903 million a year earlier, as revenue declined 4.6% to $1.51 billion.

Contact:

Global Brands Group, Rick Darling, CEO, 646-839-7000