Liz Clairborne is very known, high-end fashion brand that appeals to women worldwide. Its also owns brands like Juicy Couture, Lucky Brand, and Kate Spade. Ever since Liz Clairborne hasn't been so profitable, the company feels it is in their best interest to focus on their other brands, which also target upper middle class and upper class citizens. Besides changing its main focus, Liz Clairborne might also have to carry out job cuts in order to prevent any further losses. The company has been in debt for a while due to people decreasing their shopping and spending routines. Since Liz Clairborne consists of several brands (Liz Claiborne, Claiborne, Liz, Liz & Co., Concepts by Claiborne, LC, Elizabeth, LizGolf, LizSport, Liz Claiborne New York (LCNY) and Lizwear brands), they are planning on selling these brands in order to generate money to cover their debt.
My View:
There's no doubt in my mind that high-end companies, like Liz Clairborne, are really suffering during this recession. People aren't so willing to spend hundreds of dollars on clothes these days and companies, whose clothes go for $200 to $600, aren't making much profit these days. It takes a lot of money and time to uphold a company in general, but it takes even more to uphold a company that's slowly falling apart and not as profitable. Since Liz Clairborne is in such debt, it is a wise move on their part to take some of their lowest-earning brands and sell them in order to cover the debt. This money will help the company get back on its feet and since it has less brands under its name, it will be able to shift most of its attention to the brands they want to work on and make more profitable.
http://www.usatoday.com/money/industries/retail/story/2011-10-12/liz-claiborne-sells-brands/50741798/1
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