The Grays are taking another step back from St. John Knits International Inc., the high-end clothing company the family founded four decades ago.
Cofounder and chief designer Marie Gray and creative director Kelly Gray said Monday they are retiring from the Irvine-based company, according to a Women’s Wear Daily report.
Thirty-eight-year-old Kelly Gray, St. John’s signature model since she was a teen, said she will remain a consultant to the company.
Kelly’s mother Marie is set to keep a seat on the board of directors. Cofounder Robert Gray retired in 2002.
The move is the latest in a revamp by the clothier under Chief Executive Richard Cohen, who’s made his mark since taking over last August. He came from the U.S. arm of Italy’s Gruppo Ermenegildo Zegna.
Earlier this year, St. John’s chief operating officer and former chief executive, Bruce Fetter, stepped down.
The clothing maker then tapped Brazilian Gisele Bundchen to be its model for the fall line in a bid to appear to a younger set.
The company has been struggling. The privately held maker of high-end clothing reported a 3.6% decline in sales to $103 million for the three months ended Jan. 30. Net income fell 18% to $5 million.
The company’s quarterly sales were hurt by several factors. Revenue at its retail outlet stores declined, in part because St. John postponed its popular annual warehouse sale from November to February. It also lost sales to Saks, which closed 11 stores during the quarter.
A bright spot: International sales grew by about $1.5 million, primarily due to higher sales to wholesale customers in Europe and an expansion in Hong Kong and Japan.
St. John is required to report some financial results because it holds publicly traded debt. Earlier this year St. John moved to refinance its debt. It said it planned to use cash generated from its refinancing to buy up to $13.5 million of shares from the Gray family.
New York-based Vestar Capital Partners is St. John’s majority owner.
