WARNACO NEGOTIATES SALE OF LEJABY: The Warnaco Group Inc., which earlier this fall said it planned to sell its Lejaby intimate apparel and swimwear brand, is negotiating exclusively with Palmers Textil AG, a lingerie and intimate apparel producer in Austria and Germany. Should a deal be consummated, Palmers said it would continue to operate Lejaby out of its headquarters in Lyon, France.

This story first appeared in the December 4, 2007 issue of WWD. Subscribe Today.

GALERIES LAFAYETTE EXPANDING: French department store operator Galeries Lafayette is getting serious about China. The company on Monday said it had signed a letter of intent with China’s I.T Limited to open a department store in Beijing or Macau. The agreement holds for nine months. If a project is agreed upon, the two will develop a joint venture in which I.T Limited would be the majority partner to develop the future store. The deal comes as Galeries Lafayette expands abroad. A 160,000-square-foot Galeries store is expected to open in Dubai next year, and the chain recently opened its first new department store in three decades in the northern French city of Lille. I.T Limited distributes hundreds of international brands across all price levels in China.