JC Penny to Acquire Liz Claiborne Brands

October 13 00:00 2011

New York, October 13 (RainbowNewsLine.com) – After being the exclusive licensee for Liz Claiborne merchandise since last year, Plano-based JC Penney (JCP) will be taking over the Claiborne family of brands. JC Penny will also acquire the US rights for the Monet jewelry line as part of the $267.5 million deal. Myron E. Ullman III, Penney’s chairman and CEO, said the deal is “the culmination of our extremely successful partnership with Liz Claiborne Inc.”

The takeover follows several attempts made by Liz Claiborne Inc. to revive the Claiborne brand which had flourished in the 1970s and 1980s mainly because Liz Claiborne herself gave innovative, stylish yet functional wardrobe for the office to working women. The wardrobes focused on full ensembles of tops, trousers, dresses and handbags. Liz Claiborne Inc. plans to restructure and rename itself to cater to a more upscale market and focus on its Juicy Couture, Kate Spade and Lucky Brand lines.

Ron Johnson, Penney’s incoming CEO said, “As we seek to be part of our customers’ everyday lives, ensuring that we offer the brands that are most relevant to them is a crucial component in transforming J.C. Penney into America’s favorite store.” CEO William McComb said, “Over the past few years, we have worked diligently to turn this into a more efficient, dynamic, brand-centric, retail-based company. Today marks the culmination of these efforts.”

J.C. Penney shares rose 26 cents to close at $30.23.