By Jaclyn Giovis, reporting from the National Retail Federation’s 2008 annual convention and expo in New York

NEW YORK – It was significant news when Miami-based menswear designer Perry Ellis announced last Tuesday plans to buy two Liz Claiborne women’s wear brands – Laundry and C&C California – for $37 million. The deal brings Perry Ellis back to its roots in women’s apparel and opens up opportunity for expansion in contemporary fashion.

But I wondered why Liz Claiborne would shed two brands that are so well-known to young, fashion conscious females – even if they were pocketing $37 million. And I was curious to know how hard Perry Ellis had to fight to win the deals.

I got the answers last night, when I rubbed elbows with Liz Claiborne CEO Bill McComb at a cocktail hour at the 21 Club in New York. He talked about the challenge of having to choose which brands to sell and which ones to keep, as the company looked to focus its efforts on a smaller collection of labels.

“None of the brands were bad,” McComb said. “They all offered opportunity for growth.” In the end, the decision to sell Laundry, a moneymaker in women’s dresses, and C&C California, was a “very tough decision,” he added.

That should make Perry Ellis – who apparently fought hard to seal the deals – feel good.

“When we started the process there were over 100 prospective buyers,” McComb said. “It was competitive all the way down to the end.”

And now that Perry Ellis has re-entered the women’s contemporary apparel category, McComb says Liz Claiborne will be watching its new competitor.

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