Calvin Klein to Exit Collection Business Entirely

It’s the end of the “halo” business at Calvin Klein Inc.

After deciding in January to shutter its 205W39NYC business, the renamed high-end designer collection, Calvin Klein said Wednesday it has decided not to move forward with a traditional collection business at all. As a result, 50 employees in the New York office and 50 people in the Milan office were let go. The company also plans to shutter the Milan office.

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As a result, Michelle Kessler-Sanders, president of Calvin Klein 205W39NYC, will be leaving the company, but will stay on through June to help close down that segment of the business. Klein has shipped 205W39NYC for spring.

Steve Shiffman, chief executive officer of Calvin Klein Inc., remains in his position.

Last month reports were circulating in the market that the Milan office would be closed, but at the time a spokeswoman told WWD, “We can confirm that there is a collective dismissal procedure in place for some departments of the Calvin Klein Milan office. The company is working to try to minimize the social impact of this procedure. We know it is a difficult time, but we trust in the cooperation of all of those involved to find appropriate solutions for the impacted associates.”

In the wake of Raf Simons’ departure as chief creative officer in December, Calvin Klein had originally said it planned to relaunch the 205W39NYC collection business under a new name, design approach and creative direction. At the same time, it said it planned to close its New York collection flagship at 654 Madison Avenue. These moves were expected to result in about $120 million in restructuring costs, as noted. About 100 employees were let ago across the entire business, including the flagship, in January.

As reported, Klein and Simons amicably decided to part ways in late December after the company wanted a new direction that differed from Simons’ creative vision. Simons’ three-year contract was set to expire in August.

The company still has an active search under way for a fashion director who would oversee the various categories of the brand. That person will work closely with the design and merchandising teams of all product categories.

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