Liz Claiborne buys Juicy Couture

US apparel giant Liz Claiborne Inc on Tuesday announced it has agreed to buy posh casual apparel maker Juicy Couture, but did not disclose the sum involved in the takeover. New York-based Liz Claiborne said the deal for Juicy's parent, Travis Jeans Inc, is expected to close in the second quarter.

Liz Claiborne added in a news release that Juicy Couture, which is based in California, enjoyed sales of around USD 47 million in 2002 and has agreements with international distributors in Europe, Canada and Asia with its products available at more than 1,100 stores in the US.

Juicy Couture has become immensely popular since fashion conscious glamour girls were regularly spotted in Juicy's comfy designs, especially the colourful hoodies. Fans of the form-fitting zip-up hooded jackets include Sarah Michelle Gellar, Gwyneth Paltrow, Cameron Diaz, Madonna, Britney Spears, Lara Flynn Boyle, Kirsten Dunst and Gwen Stefani. Jennifer Lopez loves them so much that her J. Lo clothing company knocked them off, as did Banana Republic.

Juicy Couture, which primarily targets fashion-conscious women aged 18 to 45, as well as teens and baby boomers, said its founders will remain with the company as co-presidents.

Liz Claiborne chairman and CEO, Paul Charron, commented: "Juicy Couture is one of the strongest trending brands in the upscale contemporary and denim zones. With its appeal to a more fashion conscious and affluent consumer, Juicy Couture adds another dimension to our portfolio, further broadening our ability to offer apparel and accessories across a wide range of consumer lifestyles and tastes.

In addition to significant organic growth of the existing Juicy product lines, we feel there are abundant brand extension opportunities in non-apparel categories, as well as in company-owned retail stores, additional international distribution and licensing."

Juicy hoodie fabrics include terry, velour, thermal, a fleece that feels like cashmere and cashmere. All have matching pants, and in some cases capris, ranging from USD 75 (GBP 49) to USD 203 (GBP 131). More than 25 colours, including several shades of pink, entice consumers. Stores such as Barneys, Saks, Neiman Marcus, Henri Bendel's, SCOOP, Fred Segal, Ron Herman and Lisa Klein have a hard time keeping them in stock.