21 Jul. 2010
LIZ CLAIBORNE, INC. TO EXIT LIZ CLAIBORNE OUTLET STORES IN US, PUERTO RICOGroup apparel maker Liz Claiborne, Inc., whose brands include Juicy Couture, Kate Spade, Lucky Brand and Mexx, is exiting its Liz Claiborne branded outlet store business in the United States and Puerto Rico.
The move is expected to curtail operating losses related to the business in early 2011.
The company said other outlet stores for its Juicy Couture, Lucky Brand, Kate Spade and Kensie brands would not be impacted by the decision.
"With the launches of the Liz Claiborne brand at JCPenney and Liz Claiborne New York at QVC, both next month, we're announcing today that we will be exiting our 87 Liz Claiborne branded outlet stores in the United States and Puerto Rico, the majority of which will be exited in the coming months," said William L. McComb, Chief Executive Officer of Liz Claiborne, Inc. "A number of factors precipitated this decision. Our current fleet of Liz Claiborne branded outlet stores was originally designed and leased to handle clearance for many brands in our portfolio - an outdated consumer proposition and one that no longer makes economic sense, given the vast changes we have made to our portfolio and business strategy over the past three years," he said, explaining that corporate strategy called for the majority of capital dollars to be allocated its retail-based Direct Brand business while leveraging its Partnered Brands for additional revenue and growth opportunities across the company.
The company expects to incur non-cash impairment charges of approximately $7.0 million in the second quarter of 2010.
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