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 labels. 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 http://www.lizclaiborneinc.com. 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.