MGT answer the question in the attachment Essay Example | Topics and Well Written Essays - 500 words

MGT answer the question in the attachment - Essay Example ses of the company include massive debt and overheads from now defunct brands whose discontinuation will be reflected positively through lower expenses on their income statement and other financial statements in the next financial cycle. The Liz Claiborne Company’s plan of action has been to trim down on organizational size with respect to work force and brands. The three brands which were retained were all priced as high end, affordable apparel which is currently safe from the disinterest of the consumers. It’s actually the middle tier apparel industry which was taken aback with penny wise consumers and so Liz Claiborne decided to sell those unprofitable brands to companies like J.C. Penney Co. and Bluestar Alliance. Yes, the action being taken by Liz Claiborne is most definitely strategic. They’ve given a lifeline to the company by trimming its burden of many loss-enduring brands and thus shaking off massive amounts of debt. These moves have also touched investors the right way. Share price of Liz Claiborne rose by 32 cents, equivalent to 3.8%, to $8.59 after the sale of Liz Claiborne and Monet Brands to J.C. Penney Co. was completed on the 2nd of November, 2011. Also, the company has announced that it will be renamed following the sale of the Liz Claiborne brand itself. This move is aimed to give fresh wind to the company, both in lieu of investor and consumer relations