Liz Claiborne to sell loss-making Mexx

Fashion group Liz Claiborne is planning to sell Mexx in an attempt to cover its debts. Analysts fear however that this will take more than the 70 million euro ask price – probably more than 140 million. 

14 consecutive quarters with a loss

When Liz Claiborne bought Mexx, in 2001, the latter was still a flourishing company. The last four years however, its turnover has dropped from $1.25 billion to $731 million (€508 million), causing a loss in each of its latest fourteen quarters. Now Liz Claiborne is rumoured to have started talks witl private equity firms Leonard Green & Partners, Sun Capital and Golden Gate Capital to take over Mexx, although previous owners Rattan Chada and Adu Advaney would also be interested in buying ‘their’ brand again. The transaction is supposed to be concluded in September.

An anonymous source at Bloomberg mentioned however that Liz Claiborne wants to retain a small part of Mexx as a proof of its belief in the brand. They keep their goal to reach the break-even point with Mexx at the end of next year. With one third of the total turnover of Liz Claiborne, Mexx is the company’s biggest daughter. Other Claiborne-owned chains are Juicy Couture and Kate Spade.