Juicy Couture (Liz Claiborne Inc) |
Claiborne also struck a deal with Li & Fung Ltd to have the Hong Kong-based clothing exporter handle U.S. distribution for Claiborne's retail chains, which include Juicy Couture, Mexx and Lucky Brand. That will "significantly" reduce its fixed costs, the company said in a statement.
Li & Fung manages the supply chains for retailers including Wal-Mart Stores Inc and Target Corp.
Elizabeth Arden will pay Claiborne $58.4 million in cash that it will use to pay down debt. But Arden will offer a lower royalty rate for the brands that will stay under license to Claiborne, include Juicy Couture and Lucky Brand fragrances.
Claiborne last month reported a quarterly loss. It has not reported an annual profit since 2006.
(Reporting by Phil Wahba, editing by Maureen Bavdek)