Recent lay offs and closure in the New York offices of Earnest Sewn have led to rumors that the brand might be in serious financial trouble. However as the brands management told WWD, ” the layoffs were part of a number of changes that have been made over the last several months intended to reduce costly overhead and create better operating efficiencies.”
“We’re trying to have a more rational operating model,” said Brian Cytrynbaum, the Montreal-based entrepreneur and owner of T-shirt maker Majestic Mills, who leads the investment group that purchased a controlling stake in Earnest Sewn in January 2008.
The offices will be moved from New York to Montreal in hopes of cutting costs and restructuring of the brands finances. In addition, the design team moved to Los Angeles. The brand’s president, Michael Press stated that, “This is a tightening up of the company and it’s an intelligent tightening up,” However, the brand maintains that the sales out of the New York office will still continue and the the brand is still going strong.
Excerpts and photo taken from article at WWD.com