DOW JONES NEWSWIRES
Christopher & Banks Corp. (CBK) announced Monday it would
reduce staff at its corporate headquarters by 24 positions, or 11%,
in the struggling women's clothing retailer's second round of job
cuts this month.
Earlier in February, Christopher & Banks shed 30
field-management operations to streamline its two brands. That
reduction is expected to save the company about $2 million in the
fiscal year starting March 1, after a restructuring charge of about
$400,000. The company said Monday the latest round would result in
a nearly $325,000 charge for the current quarter but result in
annual savings "greatly" above that.
Christopher & Banks has been in the process of reducing
costs to save more than $15 million in the upcoming fiscal year,
following steps made by companies across the economy to pare costs
amid slumping demand. The retailer said Monday there would be no
merit salary increases and that it suspended matches to employees'
401(k) contributions.
The company got new chief executive and chief merchandise
officers last year, and in December appointed a new interim chief
financial officer as it navigates the current woeful climate for
retailers. Christopher & Banks' same-store sales fell by
double-digit percentages in the past two quarters.
The largely mall-based retailer sells moderately priced
private-label fashions that cater to women 40 to 60 years old with
above-average incomes. Christopher & Banks operates 816 stores
in 46 states.
Shares were down 10 cents, or 2.3%, to $4.25 in recent trading.
The company's stock has lost about two-thirds of its value since
September.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com