Warnaco Plans to Shutter U.S. Speedo Stores

Warnaco Group Inc., maker of Calvin Klein jeans and Olga bras, said Wednesday it would close its 44 Speedo Authentic Fitness swimwear stores in the U.S. and sell an intimate-apparel plant in Honduras to trim costs.

Warnaco operates 10 Speedo stores in California, including at Century City Shopping Center, the Santa Monica Place and the Fashion Square Mall in Sherman Oaks.

The New York-based company also notified employees in Europe that it may cut jobs as sales of Warner’s brand bras decline. The moves will result in pretax expenses of $18 million to $26 million, Warnaco said.

Warnaco, which emerged from bankruptcy protection in February, said that selling the Honduran plant would save $5 million a year by contracting with cheaper factories. Warnaco profit this year may lag behind its forecast after sportswear sales fell 19% in the third quarter. Warnaco has cut inventory and refinanced debt as sales fall.

Warnaco repurchased Speedo maker Authentic Fitness in 1999 for $435 million after spinning off the Commerce-based sportswear concern to investors in 1990. At the time, Warnaco’s chief executive, Linda Wachner, also headed Authentic Fitness.

Warnaco fell 7 cents to $14.73 on Nasdaq. The news was announced after regular trading. Warnaco makes Calvin Klein jeans through a licensing deal with Phillips-Van Heusen Corp.