Liz Claiborne Sheds Brands

Liz Claiborne Inc. and Li & Fung USA, a member of Li&Fung Limited, 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. "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," says William L. McComb, chief executive officer, Liz Claiborne Inc.