Calvin Klein Inc. (CKI) has shuttled its collection business like a world traveler,but is finally doing the right thing…bringing the line back in-house. To help cover the costs, CKI owner Phillips-Van
Heusen Corp. is getting $38.5 million from Warnaco Group Inc. for
several new licenses, according to WWD.
CKI will take over Warnaco’s shares of Calvin
Klein Collection licensee Confezioni Moda Italia Srl, or CMI. Warnaco
was due to begin producing Collection in 2008.
will acquire the rights to operate Calvin Klein Jeans
accessories stores in Europe, Asia and Latin America; ck Calvin Klein
accessories boutiques in Europe and Latin America; Calvin Klein Jeans
e-commerce for the Americas, Europe and Asia, and Calvin Klein Jeans
accessories e-commerce for Europe, Asia and Latin America through 2044.
"Everyone understands that it’s really best for a
Collection business to be operated in-house. Most of our businesses fit
the licensing model very well, and Collection is the most difficult to
license for several reasons," said Tom Murry, president and chief operating officer of
Calvin Klein Inc. Those challenges include the in-house
presence of creative directors Francisco Costa (women’s) and Italo Zucchelli (men’s),
versus external operations, as
well as the pressures of maximizing profitability in a licensing