Sean John is slimming its profile after cutting an exclusive distribution deal with Macy’s this spring.
The urban clothing label — founded by hip-hop entrepreneur Sean “Diddy” Combs — said yesterday it struck a deal to outsource the contracting of overseas manufacturers for its merchandise.
The licensing agreement will result in as many as 10 of Sean John’s 100-plus, full-time New York staffers moving to LF USA, a unit of global trading company Li & Fung.
The move is “a next step in expense reduction as they struggle to remain in the black,” according to one industry source. “Puffy has not been spending any time in the business. The only category doing well is the fragrance.”
However, a Sean John spokesman yesterday sought to quash speculation that the moves were an indication of recent weakness in the business.
“The design group is not being outsourced,” the spokesman said, adding that the switch would allow Sean John to focus more on its strengths in marketing under CEO Dawn Robertson, a veteran of Gap’s Old Navy chain.
“The promotion is not being outsourced and the production is not being outsourced,” the spokesman added.