Liz Claiborne Inc. said Thursday that its namesake line of clothing will be sold exclusively at J.C. Penney Co., as part of a 10-year deal that the clothing maker hopes will help reverse its fortunes.
Shares climbed 81 cents, or 16 percent, to $6.02 in morning trading
Under the licensing agreement, the Plano, Texas-based chain will be the sole U.S. department store to sell the company's lines of women's wear, along with its Liz & Co. and Concepts by Claiborne brands. The deal also includes accessories, shoes, household products and men's clothing.
Meanwhile, the fashion house will move its Liz Claiborne New York brand, designed by Isaac Mizrahi, to TV shopping channel QVC Inc.
Liz Claiborne, which has said it expects to post a 2009 operating loss, said Thursday that it expects an operating profit in 2010 because of the agreement.
An expanded line of Claiborne-branded items will be available at JCPenney next fall.
