JCPenney Closer to Acquiring Liz Claiborne Brands

Plano, Texas-based JCPenney Co. Inc. has reached an asset purchase agreement of $267.5 million with Liz Claiborne Inc. (New York) to acquire the worldwide rights for the Liz Claiborne family of brands as well as the U.S. and Puerto Rico rights for the Monet brand.

The department store retailer has been the exclusive licensee for all Liz Claiborne and Claiborne-branded merchandise in the U.S. and Puerto Rico since August 2010. Under the terms of the original 10-year agreement, JCPenney could exercise its rights to purchase the Liz Claiborne family of brands after year five of the agreement or again at year 10.

The deal would include the worldwide rights and intellectual property for the entire Liz Claiborne brand portfolio, including Liz Claiborne, Claiborne, Liz, Liz & Co., Concepts by Claiborne, LC, Elizabeth, LizGolf, LizSport, Liz Claiborne New York (LCNY) and Lizwear brands. Additionally, the company will retain the Liz Claiborne design team, which will continue to lead the creative process for these brands.

The company also expects to become the exclusive destination for Monet, which is currently not offered at JCPenney.

“This is the culmination of our extremely successful partnership with Liz Claiborne Inc.,” says Myron Ullman, III, chairman and ceo. “The brands we are acquiring hold tremendous appeal for our customers, and the performance of the Liz Claiborne and Claiborne brands at JCPenney has consistently exceeded our high expectations. We will now build on that strength to accelerate the brands' performance.”

Incoming ceo Ron Johnson adds, “As we seek to be part of our customers' everyday lives, ensuring that we offer the brands that are most relevant to them is a crucial component in transforming JCPenney into America's favorite store. Our ownership of these brands gives us a strong foundation for continued innovation and growth.”

The transaction is expected to close within 30 days.