Liz Claiborne Inc. has reached an agreement to sell Laundry By Design and C&C California to Perry Ellis International for approximately $37 million in cash. In addition, it plans to close Sigrid Olsen and will retain the Enyce brand.
Claiborne will exit its existing 54 Sigrid Olsen stores by mid-2008 and will incur cash costs of about $17 million to $22 million.
After analysis of alternatives for Enyce, the firm concluded that the best way to maximize the value of the brand was to retain and strengthen it. Enyce will be housed in the company’s partnered brands segment under the direction of Dave McTague, executive vice president of partnered brands, and will continue to be run by Carmine Petruzello, president of Enyce.
The company also said it expects to reveal plans for the five remaining brands under strategic review – Dana Buchman, Ellen Tracy, Kensie, Mac & Jac and Prana – by the end of the first quarter of 2008.
For more, see Wednesday’s issue of WWD.