Liz Claiborne line moving from Macy's to Penneys

NEW YORK - Clothing-maker Liz Claiborne Inc. said yesterday that it would help reverse its fortunes by moving its namesake line to J.C. Penney Co. Inc. from Macy's Inc. and other stores and taking the line designed by Isaac Mizrahi to the TV shopping channel QVC Inc., which is based in West Chester, Pa.

News of the 10-year deal with Penneys sent Liz Claiborne stock up 31 percent. Penneys shares rose to a 52-week high.

Under the licensing agreement, Penneys will be the sole U.S. department store to sell the company's Liz Claiborne and Claiborne lines of women's wear, along with its Liz & Co. and Concepts by Claiborne brands. The deal includes accessories, shoes, household products, and men's clothing, as well as women's. The lines will debut next fall.

The company said prices for the Liz Claiborne New York brand designed by Mizrahi will be higher than prices for the Penneys lines.

Claiborne's deal with QVC is a multiyear deal with renewal rights.

Mizrahi moved to Liz Claiborne after his long-standing relationship with Target Corp. ended. His arrival was seen as a way for Liz Claiborne to update its image.

The company's other lines - including Kate Spade, Juicy Couture, Lucky Brand, and Mexx - and their stand-alone stores are not affected by the deal announced yesterday.

Though it expects to post a loss for 2009, Liz Claiborne said it expected a profit for 2010 because of the agreement.