Kenneth Cole to step down as CEO, hires Liz Claiborne exec

Designer Kenneth Cole, who has been seeking to relinquish day-to-day operations of the company he founded to a seasoned leader, on Tuesday appointed Jill Granoff, a highly respected cosmetics and apparel executive to the position of chief executive.

The move signals a sharp change in management style for Cole, 54, who has held the position of CEO and chairman of Kenneth Cole Productions since its inception in 1982, and is known as a notorious micro-manager. As the company, with $510 million in sales, has struggled in recent years, the need to bring in an outsider with deep operational experience took on greater urgency. Cole launched a formal search for someone to succeed him as CEO five months ago, and personally called Granoff, 46, who had been a division vice president at Liz Claiborne, to offer her the job. He will remain chairman and chief creative officer.

Fortune broke the news that Cole was looking for a CEO in November.

Company founders can be especially difficult to work for, especially someone like Cole who for years has had cart blanche to run his company according to his own ideas. Although Kenneth Cole Productions went public in 1994, Cole remains the controlling shareholder with 47 percent of the Class A stock and all of the Class B stock, which carry 10 votes per share. The company’s most recent president, Joshua Schulman, left in July after six months on the job. Although his predecessor Paul Blum held the post for 15 years, he was said to be president in name only. Cole was known for making most of the decisions, from the height of a heel to the length of a skirt, himself.

In hiring Granoff, Cole has shown a willingness to pull back from day-to-day decision making to focus on the creative and strategic vision of the company, including his hallmark of clever advertising. He has also turned to someone who has had experience working with company founders. At Liz Claiborne, where Granoff had been executive vice president of direct brands, she worked closely with the founders of Juicy Couture and Lucky Brand Jeans. Previously, as chief operating officer of Victoria’s Secret Beauty, Granoff worked with Les Wexner, founder of parent company Limited Brands. She also did a stint at Estee Lauder, where her duties were intertwined with the Lauder family.

Her departure is a blow to Liz Claiborne, which has been undergoing a major restructuring. Granoff helped to bring discipline to the burgeoning Juicy Couture, Lucky and Kate Spade brands, which, along with Mexx, are considered the company’s growth drivers. Liz Claiborne is not expected to replace her, meaning that the direct brands will report to CEO William McComb.

At Kenneth Cole, Granoff, who will also join the board, will face considerable challenges when she starts her new job on May 5. An attempt by the company to make its shoe and apparel lines more luxurious and upscale has so far hit snags. Last year, Kenneth Cole had $7.1 million in net income, down from $26.8 million a year earlier. The stock, which traded as high as $27 a year ago, is now languishing around $17.45.