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New York apparel maker Liz Claiborne Inc. said Tuesday it will sell two brands to Perry Ellis International Inc. and discontinue a third, the latest update of a months-long strategic review.
Perry Ellis agreed to pay $37 million for Liz Claiborne's C&C California brand, which is focused on fashionable and comfortable cotton clothing, and Laundry by Design, a womens' dress and sportswear label aimed at the young and hip. Liz Claiborne also said it would shutter its professional women's wear line Sigrid Olsen and keep its streetware brand Enyce. Liz Claiborne first advised in July it could sell 16 of its 36 labels. At the time, the company also said it planned to slash annual costs by $190 million and shed nearly 9% of its work force, or up to 800 employees. The company retained Centerview Partners for its strategic review. Liz Claiborne in September announced a deal with Li & Fung USA for its Emma James, Intuitions, JH Collectibles and Tapemeasure brands, and advised two more brands would be incorporated into existing labels and a third would be discontinued. The news comes days after Fortune's Garmentos blog reported a sale of Liz Claiborne's Ellen Tracy Inc. label to American Capital Strategies Ltd. could come within days. Last year, Fortune also pegged Perry Ellis as a front-runner for a few brands. The company plans to wrap up the review completely by the end of the first quarter and unveil plans for the five remaining brands under consideration: Dana Buchman, Ellen Tracy, Kensie, Mac & Jac and prAna. The Deal's Lisa Gewirtz-Ward noted in July that the company's problems stemmed from both the threat of a slowdown in consumer spending and department store consolidation:
- Carolyn Murphy See Liz Claiborne press release Categories Deal Video
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