Kellwood Shifting Moderate Labels to L.A.

In a major corporate overhaul, St. Louis–based Kellwood Co., maker of women’s and children’s clothing, is moving operations for three of its biggest brands to its West Coast headquarters.

Michael Kramer, the new president and chief executive of the powerhouse clothing manufacturer, announced that operations for its Sag Harbor, Koret and Briggs New York labels are moving from New York to the company’s offices in City of Industry, Calif., in the middle of 2009. Sales and retail planning will remain in New York.

Together, the three labels make up about one-half of Kellwood’s annual revenues of $1 billion. They will join the company’s other brands—XOXO, Jolt and My Miche—already located in Industry.

In addition, the company’s customer service, import operations, logistics and purchase-order processing, now located in Rutherford, Tenn., will be phasing out its operations during the first quarter of 2009 and moving to the City of Industry offices.

In total, about 200 people, or approximately 10 percent of Kellwood’s workforce, will be moving west.

The rebalancing act is part of Kellwood’s restructuring plan to improve profit that started soon after Sun Capital Securities Group acquired the firm in February for $762 million. Kramer became president and chief executive in August, replacing Robert Skinner.

Since then, several changes have taken place. In November, the company completed the sale of its two childrenswear divisions, Gerber Childrenswear and Hanna Andersson, to Childrenswear, a Sun Capital Partners affiliate, for $179 million. —Deborah Belgum