Lillian Vernon lays off half of work force, could file for bankruptcy

In Virginia Beach, Catalog and Internet retailer Lillian Vernon laid off 185 workers Friday – half of the company’s year-round work force – and could file for bankruptcy or be sold.

The company suffered two rounds of layoffs last year. About 190 jobs were eliminated last summer after it lost the call center and distribution business for Time-Life books and music. In December, roughly 140 cuts were made, and they were attributed to the same reasons cited for Friday’s layoffs – rising costs and sluggish sales.

In the past, Lillian Vernon has offered severance packages to terminated salaried employees, but it does not have enough money to provide severance packages this time.

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