Fashion firm Liz Claiborne Inc is to suspend its quarterly cash dividend indefinitely in an effort to enhance its financial flexibility in a tough retail environment.

CEO Bill McComb said: "While there is much going on in the economy that we have no control over, we are keenly focused on controlling those things that are within our power -- inventories, accounts receivable, brand and strategy execution and generating free cash flow."

The company, which owns the Juicy Couture, Kate Spade and Mexx brands, paid shareholders a dividend of $0.056 per share on 15 December.