Garmentos

Liz Claiborne close to deal for apparel brands

Rumblings from inside Liz Claiborne (LIZ) suggest an announcement is imminent regarding the fate of several apparel brands it has put up for sale.

Liz Claiborne is expected to announce, perhaps as soon as Friday, the sale of Ellen Tracy to the private equity firm American Capital Strategies, a person close to the negotiations said. Speculation is also swirling about Sigrid Olsen. Two people familiar with the situation said that one of the brand’s original investors, a longtime apparel executive named Ed Jones, had been interested in buying the brand, but a deal is believed to have fallen through prior to Christmas, one of those people said.

A Liz Claiborne spokeswoman declined to comment.

Liz Claiborne has decided to keep several other brands it had put on the block, including Dana Buchman and possibly Enyce, after bids came in below expectations. The auction was complicated by potential suitors wanting to bid for brands individually, rather than as a package, as Liz Claiborne had initially hoped.

The divestitures are part of a plan announced by Liz Claiborne CEO William McComb in July that would see the $5 billion apparel maker shed laggard divisions to focus on its most promising brands: Juicy Couture, Lucky Brand Jeans, Kate Spade and Mexx.

As Fortune reported in late December, Liz Claiborne is also on the hunt for big name designers to revive its namesake Liz Claiborne sportswear brand. The company has had advanced negotiations with runway designer John Bartlett about a men’s line for Liz Claiborne and is also looking for a designer for the women’s label, sources said.