Liz Claiborne To Sell Exclusively Through JC Penney and QVC

Can exclusive partnerships revive a brand? Depends on your partner.

After disappointing results with fashion insiders Tim Gunn and Isaac Mizrahi, Liz Claiborne has changed course and jumped to the other end of the fashion spectrum: JC Penny and QVC.

Starting in Fall 2010, the Liz Claiborne line will be sold exclusively though JC Penney. Isaac Mizrahi-helmed collection, Liz Claiborne New York, will be sold on QVC. The brand expects to return to profits in 2010, with forecast sales of $100 million on QVC and $1 billion in Penney stores.

The agreement shifts all Liz Claiborne's sourcing, marketing and distribution and their costs to JC Penney, while they retain control of design and brand management. The partnership will shelter Claiborne Inc.'s margins from department store markdowns. Instead, the company will receive a share of royalties based on profit.Continue reading...