Liz Claiborne Inc. Sells Emma James, Intuitions, JH Collectibles and Tapemeasure to Li & Fung USA

Sep 13, 2007, 01:00 ET from Liz Claiborne Inc.

    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
 and employees.
     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:

SOURCE Liz Claiborne Inc.