Has Liz Claiborne reached a turning point?
Struggling apparel firm Liz Claiborne Inc is to shed more brands, including its namesake line, for $328m as part of ongoing attempts to reduce its long-term debt, and will change its name as the businesses refocuses on three core brands. The company finally believes it has reached a critical turning point.
Five years after taking the helm at Liz Claiborne Inc, it's hard to see exactly what William McComb has achieved. Sales are down, last year it could only muster a loss of $305.7m, and nearly one-quarter of its heyday brands have gone. But yesterday the company was confident it had finally reached a critical turning point.
Bluestar Alliance LLC says it has set up a new unit to buy the Kensie, Kensie Girl & Mac & Jac brands from Liz Claiborne Inc, which was announced as part of a wider brand sell-off yesterday (12 October).
Following on from yesterday's news that Liz Claiborne Inc is to surrender its license for the DKNY Jeans and DKNY Active businesses one year ahead of schedule, Donna Karan International (DKI) says it now plans to ramp up the jeans unit's growth.
Struggling apparel firm Liz Claiborne Inc is to shed more brands, including its namesake line, for $328m as part of ongoing attempts to reduce its long-term debt, and will change its name as the business refocuses on three core brands.
The deal revealed last week by Liz Claiborne Inc to sell its loss-making Mexx business to a joint venture led by private equity firm The Gores Group is a win-win for all concerned, the company believes. But analysts suggest more non-strategic brands could still be in the firing line.
Apparel seller Liz Claiborne Inc has spent the best part of the last four years trying to reduce its long-term debt and bring expenses in line with weak sales and consolidation of its department store customers. Measures have included the axing of thousands of global jobs, and the disposal of at least 14 brands - the most recent of which was its loss-making Mexx business. Here just-style charts its turnaround efforts so far.
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