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Kenneth Cole has dug in his heels again.
The New York fashion designer — who built a retail empire in the 1990s fueled by his trendy men’s shoe designs — yesterday installed himself as CEO of the company as it tries to regain its footing.
Cole said he had “a very high regard” for Jill Granoff, an ex-Liz Claiborne exec who he tapped as CEO three years ago. But while Cole and Granoff had their offices next to each other, “that was as close as they ever got,” according to a source close to the company.
Granoff couldn’t be reached for comment yesterday, and Cole declined to be interviewed.
Paul Blum, who yesterday was tapped as vice chairman following a previous four-year stint as president of Kenneth Cole, told The Post in an interview that he “had no idea” why Granoff left the company.
But sources close to the situation said Granoff buckled under Cole’s micromanaging as she strove to slash costs.
“It’s The People’s Republic of Ken,” said one former executive, likening Cole’s management style to that of China’s inflexible, totalitarian regime.
Last month, before Cole sent out a now-infamous message on Twitter that Egyptians were rioting because of excitement over his spring collection, he “sent it out to the whole floor,” according to a source. Employees appeared reluctant to suggest that the post was insensitive for fear of annoying Cole, the source said.
Cole “really does listen to other points of view,” according to Blum, denying that Cole has a problem with delegating authority. “He challenges people and wants people around him to have a strong point of view.”
Still, former employees and business partners complain that Cole is prone to micromanage and second-guess employees without always having a strong point of view of his own.
Cole “is actually a wonderful person who is very socially responsible, and he’s not confrontational per se,” according to a senior executive in the apparel industry. “But at the end of the day, he doesn’t really trust anybody to make a decision and that sometimes includes himself.”
After a big growth spurt in the l990s, Kenneth Cole’s results and stock price have steadily eroded. Yesterday, Kenneth Cole shares tumbled 7 percent on news of Granoff’s departure.
Also yesterday, the company reported a smaller fourth-quarter loss, helped by higher revenue. The results also reflected the company’s decision to accelerate the closing of underperforming stores.
The bigger problem, according to some analysts, is that Kenneth Cole’s hodge-podge of clothing lines lacks a clearly targeted customer.
Kenneth Cole “must get more focused on a core customer, or else they will continue to be a Jack of all trades and a master of none,” said Sam Poser, an analyst at Sterne Agee.