Blog: Liz offloads first lines
Leonie Barrie | 14 September 2007
The sale of four moderately priced brands by Liz Claiborne to the US arm of Li & Fung is seen as good news since these were thought likely to be the most difficult labels to offload. The apparel firm’s decision to discontinue three other brands is also another important step in its efforts to focus on fewer, but more powerful names.
Now that the four brands (Emma James, Intuition, JH Collectibles and Tapemeasure) have gone, the First Issue business at Sears is to be discontinued, and the Stamp 10 and Tint lines incorporated into ranges sold at Kohl’s and JC Penney respectively, the company can focus on getting rid of the higher priced brands that have not yet been sold or discontinued.
These include C&C California, Dana Buchman, Ellen Tracy, Enyce, JH Collectibles, Laundry by Design, Mac & Jac, prAna and Sigrid Olsen – none of which is likely to remain part of the Liz Claiborne portfolio for long if reports of high levels of interest are to be believed.
But once these brands have gone, the company’s focus will need to switch to growth. Posting a 64% slump in second quarter profit in July to $14m, it warned of continuing pressures in the wholesale channel – which are weighing heavily on sales.
Ratings agency Standard & Poor last week said it believes Liz Claiborne will be challenged to improve its profitability in light of a difficult retail environment characterised by retailer consolidation, weak customer traffic, and the proliferation of retailers' private-label goods.
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
- What TTIP might mean for US, EU textiles & apparel
- Four steps to reduce product defects
- Unlocks for the future fashion sourcing landscape
- Geo-political uncertainty and how to survive it
- Adidas raises the bar for North America sales
- H&M, VF Corp and Levi among most ethical companies
- US Q4 in brief – J Crew, Perry Ellis
- Sears has "substantial doubt" of future
- Vietnam limits hazardous chemicals in apparel
- PVH Corp to acquire e-commerce retailer True&Co
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Outdoor performance apparel 2016: A broader perspective