Sandpoint, ID—Coldwater Creek, which recently announced it was exploring a possible sale or other strategic alternative, said Tuesday that it would be reducing its workforce by some 20% in a cost-cutting measure.
The women’s specialty retailer has been struggling to turn around business through “restructuring and cost reduction program” which hopes to save $20 million to $25 million. The layoffs and restructuring are expected to cost the retailer about $3 million in severance and other expenses.
It is a move that Coldwater Creek hopes will improve its financial and competitive position, making it more efficient and profitable, according to a press release.
“The decision to downsize our workforce, in conjunction with our other cost reduction initiatives, was a very difficult one,” said Jill Dean, president/ceo. “We appreciate the many contributions of all our employees, and we will provide support to those affected during this transition period.”
Perella Weinberg Partners was hired to help Coldwater Creek’s board of directors evaluate its options, but no timetable was given for the process.