Liz Claiborne Refocuses With Brand Sales, Name Change
Wednesday, October 12, 11:57 AM ET

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The company said it has agreed to sell its Liz Claiborne and Monet brands to J.C. Penney (JCP). It will sell it Kensie brand to Bluestar Alliance, and it has completed the sale of its Dana Buchman brand to Kohl's (NYSE:KSS).

In all, Liz Claiborne has received cash proceeds of $328 million, of which $308 million represents sale proceeds, and it will use the proceeds to pay down debt.

Liz Claiborne will continue to be the exclusive supplier of jewelry to J.C. Penney for the Liz Claiborne and Monet brands.

The company has also agreed to early termination, effective at the end of the year, of the DKNY Jeans and DKNY Active license from Donna Karan International.

Liz Claiborne will focus on its Juicy Couture, Lucky Brand, and kate spade brands.

Following the closing of the transactions, the company's net debt at year end is expected to be $270 million to $290 million.

Liz Claiborne said it plans to eventually change its name to better reflect its new focus.

Yesterday, apparel company The Jones Group (JNY), which sells its brands independent retail stores as well as at department stores like Macy's (NYSE:M) and Dillard's (NYSE:DDS), said it would sell is jeanswear division.

For MarketNewsVideo.com, I'm Kristin Bianco.