[MissMagAddict]

Source | WWD | January 16, 2008

Liz Claiborne Inc. has enlisted Isaac Mizrahi to rescue its struggling flagship brand.

Mizrahi is leaving Target Corp. — the venue that introduced him to the mainstream customer — at the end of this year and will become creative director for all categories of the better-priced women's Liz Claiborne brand, beginning in spring 2009.

William L. McComb, chief executive officer of the $4.99 billion Liz Claiborne Inc., told WWD that the "long-term" deal — the brainchild of Dave McTague, executive vice president of partnered brands for Liz Claiborne Inc. — has been in the works for months.

"Dave walked in the door with a charter to fill the emotional vacuum of the brand," McComb said. "Liz Claiborne is an extremely well-known, well-regarded brand that failed to deliver on the core values that made it great in the first place: color, fit, value and style. The turning point was when Liz Claiborne died [in June], and we got lots of calls and letters from consumers who didn't know she hadn't been working here since 1989."

Claiborne is hopeful that Mizrahi can bring his fashion wit and color sense to the struggling women's collection.

Mizrahi's appointment follows Monday's announcement that John Bartlett will design the Claiborne men's sportswear line, under the label Claiborne by John Bartlett, also launching for spring 2009. Unlike the men's line, the core Liz Claiborne collection will not be called Liz Claiborne by Isaac Mizrahi, though his association with the brand will be clear on the labels.

"Isaac is an international icon," McTague said. "He not only knows this woman, he adores her. His core values are so perfectly aligned with our core brand: fit, color, comfort, value, fun and a uniquely American brand."

Mizrahi replaces Richard Ostell, who has designed the line since 2005. Karen Harvey Consulting conducted the search.

Suffering from what Claiborne executives have admitted was stagnant product, the flagship brand has seen a continued slide in volume, from about $2 billion in the early Nineties to accounting for part of the $1.5 billion in sales of the Liz Claiborne brand family, which now also includes Liz & Co., Concepts by Claiborne, Claiborne, Axcess and Villager, brought in last year. McComb said the goal still is to stabilize the losses before he focuses on growing the line. He added that the company will probably be holding prices, but improving the product to deliver better value for the price, which has been a weakness of the brand.

Last year the biggest wholesale partner for the Claiborne brand, Macy's, drastically cut back orders, partly as a response to the creation of the diffusion Liz & Co. line for J.C. Penney. Mizrahi will not design Liz & Co. or other diffusion lines.

"This is the long-awaited differentiation that Macy's has been asking for," McComb said. "This is the vital answer to the differentiation."

Jennifer Black, a retail analyst at her namesake firm, thinks the move will earn back the space the line has lost in retailers, which sources said have scaled back spring orders 30 percent, after 50 percent reductions last year. "In the short run, are things going to change? No, but longer term, the space they have been losing in department stores may stabilize," said Black. "If these department stores have the opportunity to carry Isaac Mizrahi, which was a huge draw for Target, they would be crazy to not do it."