Liz Exits Outlets
Liz Claiborne Inc. announced it will be closing 87 Liz Claiborne–branded outlet stores in the United States and Puerto Rico by the beginning of 2011. The decision coincides with the Liz Claiborne label being sold exclusively at JCPenney next month and its Liz Claiborne New York, designed by Issac Mizrahi, being sold exclusively on the home-shopping network QVC. Liz Claiborne said its brands Juicy Couture, Lucky Brand, Kate Spade and Kensie won’t be affected by the store closures. The company said the decision will result in Liz Claiborne incurring a non-cash impairment charge of approximately $7 million in the second quarter of 2010, and it may incur additional non-cash charges in the future. The company also expects to record cash charges related to lease terminations and severance pay for laid-off employees.
