(Reuters) - Clothing manufacturers, irked by the deep holiday discounts offered by retailers, may force department stores to absorb a larger chunk of the markdowns, Bloomberg reported.
Fashion company Liz Claiborne Inc, HMS Productions Inc and other apparel companies plan to push back at the retailers who slashed prices as much as 70 percent this holiday season, the agency said.
The agency cited Lou Breuning, president of New York-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 Inc.
Apparel manufacturers and department stores will meet before the retail fiscal year ends on January 31 to determine how to split discount costs, the agency said.
Liz Claiborne, HMS and Macy's could not be immediately reached for comment.
U.S. retailers faced what could be the worst holiday shopping season in nearly four decades as a year-long recession, tighter credit and mounting job losses squeeze household budgets.
Despite markdowns of 60 percent to 70 percent and extended store hours, retailers' hopes that the last weekend before Christmas would bring shoppers to stores were dashed, as poor weather kept many consumers huddled indoors.
(Reporting by Eric Yep in Bangalore)
