Richard Seesel

Claiborne and Penney: A Marriage Made in ...

August 17, 2010

FROM RETAILWIRE:
Last October when Liz Claiborne announced the brand had entered into an exclusive deal with J.C. Penney, many thought it would probably be a bigger win for the retailer than the brand. Do you think the J.C. Penney deal could mark the final chapter of the Liz Claiborne brand or is this the beginning of a bright new future for the business?      [more...]

It's hard to agree with board member Arthur Martinez after looking at the succession of losing quarters, and the deflation in Liz's stock price. While I agree that the exclusive with JCPenney is the best way to salvage the original Liz Claiborne brand, it will be a challenge for JCP to recapture its focus on a broad but well-targeted consumer.

The Claiborne team did face several challenges: Too many internal brands to manage, retail consolidation and big stores' push for exclusives. But they did themselves no favors by mismanaging the core brand--and turned themselves from an apparel company into a licensing company in the process. Board members really ought to question their own due diligence over the past several years.