Discount retailer Kmart Holding Corp has opened an apparel design office in New York City's garment district.

The Michigan-based company, which emerged from bankruptcy last May, has assigned the Kmart Design Group to refocus and expand its apparel lines.

At the helm is Kmart chief creative officer Lisa Schultz, who joined the company last year after working for Gap Inc, Ralph Lauren and Calvin Klein.

"New York is one of the fashion capitals of the world, and we feel that this is an opportunity to bring quality and style to Kmart customers," spokesman Jack Ferry said.

Kmart sells a number of exclusive fashion brands including Thalia Sodi, Jaclyn Smith, Kathy Ireland and Joe Boxer.