US women's wear retailer Liz Claiborne is to exit its 87 loss-making outlet stores in the US and Puerto Rico early next year. The company said its other outlet stores, including Juicy Couture, Lucky Brand, Kate Spade and Kensie were not impacted.
Liz Claiborne's CEO William McComb said the current fleet of company stores was originally designed and leased to handle clearance for many brands in its portfolio which is now "an outdated consumer proposition and one that no longer makes economic sense."
The company has made vast changes to its portfolio and business strategy over the past three years. Mr McComb said: "With the launches of the Liz Claiborne brand at JCPenney and Liz Claiborne New York at QVC -- both next month -- we're announcing today that we will be exiting our 87 Liz Claiborne branded outlet stores in the United States and Puerto Rico, the majority of which will be exited in the coming months."
In connection with the action, Liz Claiborne estimates non-cash impairment charges of about seven million dollars in the second quarter of 2010. The company said it expects the related operating losses from the Liz Claiborne outlet stores to be eliminated in early 2011.
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