NYSE-listed Liz Claiborne has agreed to sell off its worldwide rights and intellectual property of Liz Claiborne brands to J.C. Penny for $267.5 million. The portfolio includes Liz Claiborne, Claiborne, Liz, Liz & Co., Concepts by Claiborne, LC, Elizabeth, LizGolf, LizSport, Liz Claiborne New York (LCNY) and Lizwear brands.
J.C. Penny has been the exclusive licensee for Liz Claiborne since August 2010 of last year. The initial 10-year agreement stated that J. C. Penney could exercise its rights to buy the family of brands after five years or again at year 10. The recent announcement kicked the original agreement into high gear.
An affiliate of Bluestar Alliance is also taking a piece of Liz Claiborne’s brands. Bluestar has agreed to acquire Kensie, Kensiegirl and the Mac & Jac brands for approximately $40 million.
William McComb, CEO of Liz Claiborne, said in the press release that the company has sold off the brands in order to focus on its global lifestyle brands, Juicy Couture, Lucky Brands and Kate Spade. Executives are also planning on changing the name the corporation to better reflect its lifestyle brands.
Liz Claiborne stated that the recent deals should pull in $328 million in cash proceeds, inclusive of sale proceeds of $308 million.
The deal, which is subject to regulatory approval, is expected to close within then next 30 days.
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