LIZ CLAIBORNE HOOKS UP WITH JC PENNY

What a difference a decade makes. It seems like only yesterday that Haltson defied retail convention by selling his wares to JC Penny. At that time the retail community was outraged at this upper class name going downscale.

But retail business, the economy and popular culture has made it cool to mix and mingle with a casteless cloth system.

Liz Claiborne is taking its clothing line from Macy’s (and other stores) to J.C. Penny. They are also selling the Isaac Mizrahi collection on QVC (another shocker).

News of the 10-year deal (that starts next fall) with J.C. Penney sent Liz Claiborne's stock up 28 percent. J.C. Penney will be the only U.S. department store to sell Claiborne women's wear, along with Liz&Co. and Concepts by Claiborne. The deal includes accessories, shoes, men's and women’s clothing.

Mizrahi made news when he moved to Liz Claiborne after his deal with Target Corp. ended.

The company's other lines - Kate Spade, Juicy Couture, Lucky Brand and Mexx are not affected by the JC Penny deal (but they should be).

Liz Claiborne said it expects a profit for 2010 because of the agreement. Retail consultant Walter Loeb said the deal was a win for both companies because the exclusive line will boost Liz Claiborne's sales and expand traffic to J.C. Penney.

The company's overall sales, including the luxury brands Juicy Couture and Kate Spade, slipped 29 percent to $683.8 million from $963.4 million in the second quarter.

PS. Does anyone shop at JC Penny anymore? Hello.