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NEW YORK — Clothing maker and retailer Liz Claiborne Inc. is working to improve its performance with help from turnaround firm Alvarez & Marsal.
The company said Thursday that it has hired the turnaround firm on a short-term basis to review its operations with the goal of improving its cash flow in the U.S. and Europe.
Liz Claiborne revamped its business several years ago, cutting brands to focus on its more powerful labels, like Juicy Couture and Lucky Brands Jeans. More recently, it relaunched its namesake brand under the design direction of Isaac Mizrahi, whose first collection for Liz Claiborne hit stores this past spring.
The company also has cut other costs. But sales of its key brands have suffered as consumers cut their discretionary spending, and the company expects its sales to continue falling.
The company reported a loss of $82.1 million in its second quarter, which ended July 4, compared with a loss of $23.1 million a year earlier.
Alvarez & Marsal could not be reached for a comment.
Robert Vill, Liz Claiborne's treasurer and vice president of finance, said in a statement that the company brought in Alvarez and Marsal as part of its discussion with its lenders.
Alvarez & Marsal will review Liz Claiborne's working capital and cost-reduction plans and recommend further action.
Shares of Liz fell 8 cents to $4.10 in after-hours trading Thursday.
