New York City Apparel manufacturers, upset with the deep holiday discounts being offered by retailers, may force department stores to absorb a larger chunk of the markdowns, Bloomberg reported.
Liz Claiborne Inc., HMS Productions Inc. and other apparel companies plan to push back at the retailers who slashed prices as much as 70% this holiday season, according to the report. It cited Lou Breuning, president of New York City-based HMS, saying the company was asking department stores for concessions. HMS sells Spence blouses at Dillard's Inc. and Cable & Gauge knits through Macy's.
Apparel manufacturers and department stores will meet before the retail fiscal year ends on Jan. 31 to determine how to split discount costs, the report said.