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MIRA INFORM REPORT

 

 

Report Date :

19.04.2011

 

IDENTIFICATION DETAILS

 

Name :

LIZ CLAIBORNE, INC.

 

 

 

 

Registered Office :

1209 Orange Street Wilmington De 19801 

 

 

Country :

United States

 

 

Financials (as on) :

01.01.2011

 

 

Year of Establishment  :

1976

 

 

Legal Form :

Corporation for Profit

 

 

Line of Business :

Women's and male's apparel

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

United States

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

GEOPOLITICS - UNITED STATES

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Comments on data supplied:

Dear client:

 

The address you provided is that of a non incorporated business unit. We've called the company located in New Jersey, talked to an accountant and she confirmed that the address provided is that of a branch of the main company located in New York. That is why we proceed on making the report under that address.

Legal Name:

LIZ CLAIBORNE, INC.

Legal Address

1209 ORANGE STREET WILMINGTON DE 19801

USA (Registered agent)

Operative Address

1441 BROADWAY NEW YORK, NEW YORK, 10018

USA.

Telephone:

+1 (212) 354-4900

ID :

 0911577

Fax:

+1 (212) 626-3416

Legal Form:

Corporation for Profit

Email:

info@lizclaiborne.com

Registered in:

Delaware

Website:

www.lizclaiborne.com

Date Created:

1976

Manager:

William L. McComb, CEO

Date Incorporated:

April 2nd, 1981

Staff:

11,300

Stock:

94,550,352

 

 

Value:

$1,00 Par Value

Activity:

Women's and male's apparel

 

 

 

BANKS

 

Name of the Bank

The Bank of New York

 

Name of the Bank

Bank of America

 

Name of the Bank

Citibank

 

Name of the Bank

SunTrust Bank

 

Name of the Bank

Wachovia Bank

 

Name of the Bank

JPMorgan Chase Bank

 

Name of the Bank

The Bank of New York

 

Name of the Bank

Bank of America

 

Name of the Bank

Citibank

 

Name of the Bank

SunTrust Bank

 

Name of the Bank

Wachovia Bank

 

Name of the Bank

JPMorgan Chase Bank

 

BUSINESS

 

HISTORY

 

The company was created in the year 1976.

PRINCIPAL ACTIVITY

 

Liz Claiborne, Inc. engages in the design and marketing of a range of apparel and accessories worldwide.

Products/Services description:

 

It offers men’s, women’s, and children’s contemporary apparel, denim and casual sportswear, fashion apparel, business-casual apparel, career sportswear, intimate apparel, active wear, and jeans. The company also provides various accessories, including jewelry and handbags.

 

As of January 2, 2010, the company operated a total of 458 specialty retail stores, including 285 in the United States and 173 primarily in western Europe and Canada; and 363 outlet stores comprising 215 in the United States and 148 primarily in western Europe and Canada. It also engages in e-commerce and licensing operations relating to its various retail and wholesale brands.

Sales are:

 

Retail

Brands:

 

JUICY COUTURE

KATE SPADE

LUCKY BRAND

MEXX

AXCESS

CLAIBORNE

CONCEPTS BY CLAIBORNE

Clients:

 

General clientele

Suppliers:

 

LIZ & CO

MARVELLA

MONET

TRIFARI

DANA BUCHMAN

MAC & JAC

KENSIE

DKNY

Operations area:

 

National, International

The company imports from Worldwide

The company export to Worldwide locations.

Competitors:

 

Benetton Group S.p.A.

Jones Apparel Group, Inc.

Lci Holdings, Inc

Xo Jeans Inc

Danny Fashion

Comments on staff:

 

The company has 11,300 employees at group level including all the branches.

PAYMENTS

 

regular

LOCATION

Headquarters

 

The subject is headquartered at 1441 Broadway

New York, NY 10018 United States.

Comments on location:

 

The company is incorporated in Delaware for tax purposes. However it operates and is headquartered in New York.

Branches:

 

The company has many different branches around the country including:

 

-One Claiborne Ave., North Bergen, N.J. 07047

Among others.



Shareholders - Manager - Related Companies

 

Capital:

 

Breakdown

% of Shares Held by All Insider and 5% Owners: 24%

% of Shares Held by Institutional & Mutual Fund Owners: 95%

% of Float Held by Institutional & Mutual Fund Owners: 125%

Number of Institutions Holding Shares: 1

Shareholders Parent Company(ies):

 

Top Institutional Holders:

Invesco Ltd.

Tremblant Capital Group

FMR LLC

Bank of New York Mellon Corporation

VANGUARD GROUP, INC. (THE)

Alyeska Investment Group, L.P.

PERRY CORPORATION

BlackRock Fund Advisors

ELM RIDGE MANAGEMENT LLC

WELLINGTON MANAGEMENT COMPANY, LLP

 

Top Mutual Fund Holders:

Invesco Van Kampen Small Cap Value Fd

Advantage Funds, Inc.-Dreyfus Opportunistic Small Cap Fund

Invesco U.S. Small Cap Value Fund

VANGUARD EXPLORER FUND, INC.

ROYCE OPPORTUNITY FUND

Aston/Tamro Small Cap Fund

VANGUARD SMALL-CAP INDEX FUND

Columbia Fds Ser Tr I-Columbia Select Small Cap Fd

FIDELITY LOW-PRICED STOCK FUND

ISHARES S&P SMALLCAP 600 INDEX FD

Management:

 

William L. McComb, CEO

Andrew C. Warren, CFO

Nicholas J. Rubino, CLO

 

Related Companies:

 

Boodle, Inc.

Claiborne Limited

DB Newco Corp.

Handycell Ltd.

Havana, LLC

High Mallow Company N.V.

Juicy Couture Canada, Inc.

Jerg, Inc.

Juicy Couture Europe Limited

Juicy Couture, Inc.

Kate Spade LLC

L.C. Augusta, Inc.

L.C. Caribbean Holdings, Inc.

L.C. Libra, LLC

L.C. Licensing, Inc.

L.C. Service Company, Inc.

L.C. Special Markets, Inc.

LCI Acquisition U.S., Inc.

LCI Holdings, Inc.

LCI Investments, Inc.

Liz Claiborne 2 B.V.

Liz Claiborne 3 B.V.

Liz Claiborne Accessories, Inc.

Liz Claiborne Accessories-Sales, Inc.

Liz Claiborne Canada Inc.

Liz Claiborne Colombia, Ltda.

Liz Claiborne Cosmetics, Inc.

Liz Claiborne De El Salvador, S.A., de C.V.

Liz Claiborne de Mexico, S.A. de C.V.

Liz Claiborne do Brasil Industria E Comercio Ltda.

Liz Claiborne Europe

Liz Claiborne Export, Inc.

Liz Claiborne Foreign Holdings, Inc.

Liz Claiborne GmbH

Liz Claiborne International Limited

Liz Claiborne (Israel) Ltd.

Liz Claiborne Japan, Inc.

Liz Claiborne (Malaysia) SDN.BHD

Liz Claiborne Operations (Israel) 1993 Limited

Liz Claiborne Puerto Rico, Inc.

Liz Claiborne Sales, Inc.

Liz Claiborne, S.A

Liz Claiborne Servicios de Mexico, S.A. de C.V.

Liz Claiborne Shoes, Inc.

Lucky Brand Dungarees, Inc.

Lucky Brand Dungarees Stores, Inc.

Mexx Asia Pacific Limited

Mexx Austria GmbH

Mexx Belgium N.V.

Mexx Boutique SARL                 

Mexx Czech Republic s.r.o.

Mexx Deutschland GmbH

Mexx Direct GmbH & Co KG       

Mexx Direct Holding B.V.

Mexx Europe B.V.

Mexx Europe Holding B.V.

Mexx Europe International B.V.

Mexx Europroduction B.V.

Mexx Far East Limited

Mexx France

Mexx France International SAS

Mexx Group B.V.

Mexx Hellas EPE

Mexx Holding GmbH

Mexx Holding International B.V.

Mexx Holding Netherlands B.V.

Mexx Hungary Ltd.

Monet International, Inc.

Mexx Ireland Ltd.

Mexx Italy S.r.l.

Mexx Ltd.

Mexx Luxembourg S.a.r.l.

Mexx Middle East Center FZE

Mexx Modehandels AG

Mexx Modehandels GmbH

Mexx Nederland B.V.

Mexx Nederland Retail B.V.

Mexx Poland Sp. z.o.o.

Mexx Portugal, Unnipessoal, LDA

Mexx Scandinavia AB

Mexx Scandinavia AS

Mexx Scandinavia Finland Oy

Mexx Southern Europe S.R.L.

Mexx Sport Benelux B.V.

Mexx Switzerland GmbH

Monet Puerto Rico, Inc.

Nonee I Holding, LLC

Nonee I, LLC

Segrets, Inc.

Shenghui Fashion (Shenzhen) Company Limited

Skylark Sport Marketing Corporation

Retrain, NV

Verwaltungsgesellschaft Mexx Direct mbh

Westcoast Contempo Fashions Limited

Westcoast Contempo Promenade, Inc.

Westcoast

 




Financials - COMMERCIAL TRENDS AND FORECAST

 

The subject is a public company traded at the stock exchange NYSE under ticker symbol "LIZ". Please find enclosed the financial statements.

We have contacted Stasha Pilorski (Accountant) who explained us that the location in New Jersey is that of a branch of the main company located in New York. We asked further informaton about the company, but she refused stating that all of the company's information is available on its website.

Legal Fillings

 There are 607 UCC files listed with the Secretary of State of New York.

 

The company is defendant in various pending lawsuits and proceedings and is subject to various other claims arising in the normal course of its business. Although the outcome of these lawsuits and proceedings cannot be predicted with certainty at this time, it is believed that the ultimate disposition of such suits will not have a material adverse effect on the company.

 

The last annual report was filed on Feb 17, 2011.

 

 

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

 

For information:

 

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

 

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. 

 

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

 

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

 

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

 




 Rating

 

Local credit bureau gave a low credit rate.

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 

 

 Final Opinion

 

This company has been in business for 35 years. It has a staff of 11,300 employees at group level which makes it a sized company.

 

There were 16 legal filings found against the company for the year 2009 and 2010.

 

The company gave a negative profitability for the year 2010.

 

We suggest then, working with GUARANTEES.



SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

 

Profitability

NEGATIVE

Public Records

YES

 

Indebtedness

VERY HIGH

Payments

REGULAR

 

Cash

CORRECT

 

 

 



APPENDIX

 

Person Interviewed

 

Stasha Pilorski

Position

 

Accountant

Comments

 

She explained us that the location in New Jersey is that of a branch of the main company located in New York. We asked further information about the company, but she refused stating that all of the company's information is available on its website.

 

 

Financials

 

Income Statement

View: Annual Data

All numbers in thousands

 

Period Ending

Jan 1, 2011

Jan 2, 2010

Jan 3, 2009

Total Revenue

2,500,072  

2,915,919  

3,861,111  

Cost of Revenue

1,261,551  

1,563,594  

2,025,321  

 

Gross Profit

1,238,521  

1,352,325  

1,835,790  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

 

Selling General and Administrative

1,415,441  

1,653,376  

1,876,558  

 

Non Recurring

2,594  

17,007  

693,117  

 

Others

-  

-  

-  

 

 

 

Total Operating Expenses

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

(179,514)

(318,058)

(733,885)

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

26,665  

(4,007)

(6,372)

 

 

Earnings Before Interest And Taxes

(213,042)

(387,149)

(788,545)

 

 

Interest Expense

-  

-  

48,288  

 

 

Income Before Tax

(213,042)

(387,149)

(788,545)

 

 

Income Tax Expense

7,941  

(108,238)

22,512  

 

 

Minority Interest

842  

681  

(252)

 

 

 

 

Net Income From Continuing Ops

(220,983)

(278,911)

(811,057)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

(31,326)

(27,499)

(140,502)

 

 

Extraordinary Items

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

 

 

Other Items

-  

-  

-  

 

 

 

 

 

Net Income

(251,467)

(305,729)

(951,811)

 

Preferred Stock And Other Adjustments

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

(251,467)

(305,729)

(951,811)

 

 

 

 

 

 

 

 

 

 

Balance Sheet

View: Annual Data

All numbers in thousands

 

Period Ending

Jan 1, 2011

Jan 2, 2010

Jan 3, 2009

 

Assets

Current Assets

 

Cash And Cash Equivalents

22,714  

20,372  

25,431  

 

Short Term Investments

-  

-  

-  

 

Net Receivables

211,997  

264,277  

345,974  

 

Inventory

289,439  

319,713  

464,619  

 

Other Current Assets

87,773  

282,569  

223,379  

 

Total Current Assets

611,923  

886,931  

1,059,403  

Long Term Investments

-  

-  

-  

Property Plant and Equipment

375,529  

444,688  

572,428  

Goodwill

-  

-  

-  

Intangible Assets

228,110  

231,229  

251,267  

Accumulated Amortization

-  

-  

-  

Other Assets

38,880  

35,490  

20,154  

Deferred Long Term Asset Charges

3,217  

7,565  

2,200  

 

Total Assets

1,257,659  

1,605,903  

1,905,452  

 

Liabilities

Current Liabilities

 

Accounts Payable

471,387  

500,547  

517,010  

 

Short/Current Long Term Debt

101,493  

142,005  

110,219  

 

Other Current Liabilities

-  

-  

97,490  

 

Total Current Liabilities

572,880  

642,552  

627,229  

Long Term Debt

476,319  

516,146  

633,420  

Other Liabilities

197,357  

201,027  

98,786  

Deferred Long Term Liability Charges

32,784  

26,299  

38,358  

Minority Interest

2,489  

3,331  

4,012  

Negative Goodwill

-  

-  

-  

 

Total Liabilities

1,281,829  

1,389,355  

1,401,805  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

Preferred Stock

-  

-  

-  

Common Stock

176,437  

176,437  

176,437  

Retained Earnings

1,417,785  

1,669,316  

1,975,082  

Treasury Stock

(1,883,898)

(1,879,160)

(1,873,300)

Capital Surplus

331,808  

319,326  

292,144  

Other Stockholder Equity

(66,302)

(69,371)

(66,716)

 

Total Stockholder Equity

(24,170)

216,548  

503,647  

 

Net Tangible Assets

(252,280)

(14,681)

252,380  

 

 

 

 

 

Income Statement

View: Quarterly Data

All numbers in thousands

 

Period Ending

Jan 1, 2011

Oct 2, 2010

Jul 3, 2010

Apr 3, 2010

Total Revenue

664,517  

657,237  

569,840  

608,478  

Cost of Revenue

328,089  

319,674  

287,531  

326,257  

 

Gross Profit

336,428  

337,563  

282,309  

282,221  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

-  

 

Selling General and Administrative

344,873  

356,038  

366,265  

348,265  

 

Non Recurring

-  

-  

2,594  

-  

 

Others

-  

-  

-  

-  

 

 

 

Total Operating Expenses

-  

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

(8,445)

(18,475)

(86,550)

(66,044)

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

14,403  

(29,539)

22,008  

19,793  

 

 

Earnings Before Interest And Taxes

(7,065)

(60,632)

(83,642)

(61,703)

 

 

Interest Expense

-  

-  

-  

-  

 

 

Income Before Tax

(7,065)

(60,632)

(83,642)

(61,703)

 

 

Income Tax Expense

1,699  

875  

3,783  

1,584  

 

 

Minority Interest

119  

110  

355  

258  

 

 

 

 

Net Income From Continuing Ops

(8,764)

(61,507)

(87,425)

(63,287)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

(21,504)

(1,297)

226  

(8,751)

 

 

Extraordinary Items

-  

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

-  

 

 

Other Items

-  

-  

-  

-  

 

 

 

 

 

Net Income

(30,149)

(62,694)

(86,844)

(71,780)

 

Preferred Stock And Other Adjustments

-  

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

(30,149)

(62,694)

(86,844)

(71,780)

 

 

 

 

 

Balance Sheet

View: Quarterly Data

All numbers in thousands

 

Period Ending

Jan 1, 2011

Oct 2, 2010

Jul 3, 2010

Apr 3, 2010

 

Assets

Current Assets

 

Cash And Cash Equivalents

22,714  

16,392  

21,477  

13,127  

 

Short Term Investments

-  

-  

-  

-  

 

Net Receivables

211,997  

275,062  

192,222  

253,206  

 

Inventory

289,439  

380,435  

308,928  

313,033  

 

Other Current Assets

87,773  

105,133  

126,005  

128,092  

 

Total Current Assets

611,923  

777,022  

648,632  

707,458  

Long Term Investments

-  

-  

-  

-  

Property Plant and Equipment

375,529  

386,153  

386,908  

417,896  

Goodwill

-  

-  

-  

-  

Intangible Assets

228,110  

226,427  

224,809  

229,843  

Accumulated Amortization

-  

-  

-  

-  

Other Assets

38,880  

41,553  

41,175  

32,738  

Deferred Long Term Asset Charges

3,217  

6,380  

6,382  

8,543  

 

Total Assets

1,257,659  

1,437,535  

1,307,906  

1,396,478  

 

Liabilities

Current Liabilities

 

Accounts Payable

471,387  

463,494  

415,187  

419,846  

 

Short/Current Long Term Debt

101,493  

245,142  

139,920  

106,693  

 

Other Current Liabilities

-  

-  

-  

-  

 

Total Current Liabilities

572,880  

708,636  

555,107  

526,539  

Long Term Debt

476,319  

491,737  

449,704  

484,224  

Other Liabilities

197,357  

196,880  

197,400  

193,550  

Deferred Long Term Liability Charges

32,784  

29,212  

28,094  

27,311  

Minority Interest

2,489  

2,608  

2,718  

3,073  

Negative Goodwill

-  

-  

-  

-  

 

Total Liabilities

1,281,829  

1,429,073  

1,233,023  

1,234,697  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

-  

Preferred Stock

-  

-  

-  

-  

Common Stock

176,437  

176,437  

176,437  

176,437  

Retained Earnings

1,417,785  

1,447,935  

1,510,634  

1,597,478  

Treasury Stock

(1,883,898)

(1,884,475)

(1,884,333)

(1,884,271)

Capital Surplus

331,808  

330,786  

329,190  

327,316  

Other Stockholder Equity

(66,302)

(62,221)

(57,045)

(55,179)

 

Total Stockholder Equity

(24,170)

8,462  

74,883  

161,781  

 

Net Tangible Assets

(252,280)

(217,965)

(149,926)

(68,062)

 

 

Currency in USD.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.27

UK Pound

1

Rs.72.08

Euro

1

Rs.63.66

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.