Saks Inc. (New York) announced it is shutting down its Club Libby Lu specialty apparel chain.
The tween-girls 78-store chain, which Saks acquired in 2003 for $12 million, has been unprofitable. The closure should be completed in six months.
Saks has grown the chain from the 11 stores it originally acquired, but it has also been looking for a buyer for three years. At the time of the acquisition, Saks operated a number of regional department store chains – now all sold off – and Club Libby Lu shops were a good fit for those stores.
The chain was described as an experience-driven concept catering to VIPs, or “very important princesses” between ages four and 12. In addition to the specialty stores, there are still 20 Club Libby Lu shops at department stores previously owned by Saks. The business generated about $60 million in sales last year.
“Club Libby Lu is an innovative concept that was a better strategic fit with our traditional department store business,” said Saks chairman and ceo Steve Sadove. He added the closure will allow Saks to put its complete attention on its Saks Fifth Avenue business, which has been in decline lately amid the economic downturn.