JC Penney Co. Buys Liz Claiborne

Liz Claiborne line at JCPenney

Photo: JCPenney.com

Looks from the existing Liz Claiborne line sold at JC Penney

Say hello to the new owners of the Liz Claiborne brand: JC Penney Co. Inc.

The department store's holding company has purchased the debt-plagued fashion firm's namesake brand as well as its Monet label, Women's Wear Daily reports.

The acquisition follows a 2010 deal which saw JC Penney become the exclusive department store retailer for the brand, taking over for Macy's.

Meanwhile, Bluestar Alliance has agreed to buy Kensie, while Kohl's has taken Dana Buchman off of Claiborne's hands.

Claiborne, which recently sold its fragrance rights to Elizabeth Arden, has also terminated its license agreements with DKNY Jeans and DKNY Active.

The new deals will bring in $328 million to help the company pay its substantial debts. While that suggests a more stable financial situation, it will also require a new name.

"At the close of these transactions, at a time when most economists in the world are now agreeing that major European and the U.S. markets are facing significant risks of another recession, we will be a more appropriately leveraged, more capital efficient, growth-oriented company," Claiborne CEO William L. McComb tells WWD

"As such, we are exploring options for a new corporate name that will better reflect our keen focus on building and growing our three global lifestyle brands—Juicy Couture, Lucky Brand, and Kate Spade."

Hmmm. Lucky Kate Couture has a nice ring to it ...

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