Pottery Barn Kids Snips Threads Spin-off

The Pottery Barn Kids retail concept called Threads has closed after just 15 months. The two baby clothing and gifts stores, located in New York and Bellevue, WA, had opened in late 2007.

Parent company Williams-Sonoma had planned to expand the concept store, but the unforgiving economy prompted the retailer to halt the spin-off earlier this year. Threads was closed when company officials announced a $75 million reduction in overhead costs–including layoffs of about 1,400 employees.

“It was a test to begin with,” says Pottery Barn Kids spokesperson Sarah Lynam says about Threads. “The company decided to close Threads and focus on Pottery Barn Kids and its core businesses.” There is still some Threads inventory available online, she added.

When Williams-Sonoma CEO Howard Lester announced the cost reductions in January, he said the initiatives would allow the company to maintain “financial flexibility” while at the same time focusing on “strategic objectives” that will help the company be competitive.

Lester said 2009 reductions include inventory, catalog circulation, retail leased square footage growth, and capital spending. The company’s brands include Williams-Sonoma, Williams-Sonoma Home, Pottery Barn, Pottery Barn Kids, PBteen and West Elm.

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