Liz Claiborne is sticking to the dead-weight reduction program it began last year, scrapping the aging Sigrid Olsen clothing line and selling two other middle-market brands.
The New York fashion house said yesterday it’s selling the C&C California and Laundry brands to Perry Ellis for $37 million. Having failed to attract an adequate bid, the unprofitable Sigrid Olsen line will be shut down at a cost of $22 million, as it exits 54 retail stores by the middle of this year.
Liz also said it will keep the Enyce hip-hop clothing brand, which had failed to attract an adequate offer but which remains profitable.
The company is still reviewing the fate of five other brands – Dana Buchman, Ellen Tracy, Kensie, Mac & Jac and prAna. Liz didn’t comment on press reports this week that the Ellen Tracy brand was nearing a sale to private-equity investors.
Yesterday’s announcement marked the second major step of CEO Bill McComb’s reversal of the longtime acquisition strategy pursued by his predecessor, Paul Charron. Last July, Liz said it was looking to divest 16 of its 36 clothing labels representing $800 million of its $5 billion in annual revenue.
In September, Liz agreed to sell the Emma James, JH Collectibles, Tapemeasure and Intuitions brands to Li & Fung USA.
As he steadily exits Liz’s midprice wholesale apparel brands, McComb – who hired “Project Runway” host Tim Gunn as chief creative officer – is banking on a bright future for the company’s Kate Spade handbags, Juicy Couture sweats and Lucky Brand jeans.