As a result of this decision, the Company expects the meaningful operating losses related to this business to be eliminated in early 2011 when this action is anticipated to be completed.
William L. McComb, CEO of Liz Claiborne Inc., 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."
Mr. McComb continued, "A number of factors precipitated this decision. Our current fleet of Liz Claiborne branded outlet stores was originally designed and leased to handle clearance for many brands in our portfolio -- an outdated consumer proposition and one that no longer makes economic sense, given the vast changes we have made to our portfolio and business strategy over the past three years."
In connection with this action, the Company currently estimates that it will incur non-cash impairment charges of approximately $7.0 million in the second quarter of 2010 and may incur additional non-cash charges in future periods.
The Company's other outlet stores in the United States and Puerto Rico for its Juicy Couture, Lucky Brand, Kate Spade and Kensie brands are not impacted by this decision.
Want to see what 24 hours of creative awesomeness look like? Click here.
This news message is supported by The Creative Finder, an online platform for photographers, illustrators, designers, and art directors to promote their portfolios towards new clients and collaborators. Creatives who wish to sign up for an account can save 10% off annual fees with promo code 'designtaxi'.
