Dave McTague leaves; 115 more let go as partnered brands division makes shift
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Liz Claiborne’s executive vp of its partnered brands division Dave McTague has left the company. The New York-based company also announced that it let go of 115 other employees in association with the scaling down of its namesake line’s distribution through department stores. In October, the apparel company announced it would license its Liz brand exclusively to JCPenney.
The New York Times reports that McTague will receive a $1.4 million cash severance package, which represents his base salary and target bonus, according to a regulatory filing.
In November, the company announced net sales for the third quarter were down 24.2 percent to $770 million from last year. “Our financial results in the third quarter reflect some early signs of turning around underperforming businesses,” says ceo William McComb. “We expect that our announced licensing agreements with JCPenney and QVC will result in a dramatic shift in profitability for the Liz Claiborne brand wholesale business from a meaningful loss in 2009 to a profit in 2010.”
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