Fifth & Pacific earns $51mn more from Juice Couture exit

21 Nov '13

2 min read

Fifth & Pacific Companies, Inc. announced that it has signed an agreement with the landlord at 650 Fifth Avenue, a joint venture between Jeff Sutton's Wharton Properties and SL Green Realty, to terminate the lease for its flagship Juicy Couture store in New York City in exchange for a $51 million payment. The completion of this transaction is expected in the first half of 2014, at which time the store will close.

Commenting on the announcement, William L. McComb, Chief Executive Officer of Fifth & Pacific Companies, Inc., said: "We said on our third quarter earnings call that there was significant value in the 650 Fifth Avenue lease, and that proceeds from such a transaction could materially improve the total net proceeds resulting from our decision to exit the Juicy Couture business.

“With the closing of this lease termination, anticipated in the first half of 2014, our estimated net proceeds from the combined transactions associated with our exit of the Juicy Couture business are expected to be $175-$185 million."

About Fifth & Pacific Companies, Inc.

In November 2013, Fifth & Pacific Companies completed the sale of the Juicy Couture intellectual property to Authentic Brands Group (ABG) and is working under a license from ABG as the Company transitions and winds down the Juicy Couture business through 2014. The Company also has a license for the Liz Claiborne New York brand, available at QVC and Lizwear, which is distributed through the club store channel.

Fifth & Pacific

More Liz Claiborne Inc News... More Apparel/Garments News - United States Of America...