NEW YORK, Sept. 13 /PRNewswire-FirstCall/ -- Liz Claiborne Inc. (NYSE:
LIZ) and Li & Fung USA, a member of Li & Fung Limited, today announced that
they have reached an agreement for the sale of the assets of four of Liz
Claiborne Inc.'s brands under strategic review -- Emma James, Intuitions,
JH Collectibles and Tapemeasure. The transaction, which is expected to
close in the fourth quarter of 2007, includes the sale of trademarks and
inventory. Liz Claiborne Inc. has agreed to provide transition services to
Li & Fung USA to ensure a smooth transition for retail partners, vendors
Seeking to enhance its businesses at Kohl's and JC Penney, Liz
Claiborne Inc. also announced that it will incorporate the denim-based
Stamp 10 and Tint product into the Axcess and Liz & Co. lines,
respectively. As such, Stamp 10 and Tint will no longer exist as distinct
The company has also decided to discontinue its First Issue business at
Sears by the end of 2007.
Commenting on the announcement, William L. McComb, Chief Executive
Officer of Liz Claiborne Inc., said: "While this is only the first phase of
the strategic review process, we are pleased with the outcome. Li & Fung is
a terrific company that will nurture these businesses, seek to provide jobs
for many of the associates working on these brands and enable the
transition from Liz Claiborne with minimal disruption to the business."
Mr. McComb continued: "Throughout the remainder of the process, we will
continue to operate in the best interest of the brands under strategic
review and will take whatever actions necessary to grow and develop each
business. At the conclusion of the process, Liz Claiborne Inc. will be a
more agile and focused company. We are committed to building powerful
brands that are resourced appropriately, enabling us to accomplish the
strategic objectives we laid out on July 11th."
Rick Darling, President of Li & Fung USA, said: "We are pleased to have
reached this agreement with Liz Claiborne and will use these well
established brands to expand our proprietary brand portfolio. Everyone
involved at Liz Claiborne has shown genuine concern for the various
stakeholders affected by this phase of their strategic review, including
the retailers, the employees that have worked hard to develop the brands
and the integrity of the brands themselves. It has been a very professional
and cooperative effort and we now look forward to reinvigorating and
growing the brands at retail."
About Liz Claiborne Inc.
Liz Claiborne Inc. designs and markets an extensive range of branded
women's and men's apparel, accessories and fragrance products. Our diverse
portfolio of quality brands -- available domestically and internationally
via wholesale and retail channels -- consistently meets the widest range of
consumers' fashion needs, from classic to contemporary, active to relaxed
and denim to streetwear. For more information, visit
About Li & Fung USA
Li & Fung USA is a member of Li & Fung Limited. Li & Fung Limited is
the world's leading buying agency for consumer goods, managing the supply
chain for retailers and brands worldwide. Headquartered in Hong Kong, the
Group services its customers globally through a sourcing network of over 70
offices in more than 40 economies. Corporate website: www.lifung.com.
SOURCE Liz Claiborne Inc.