Mexx to be sold by Liz Claiborne

Liz Claiborne is making presentations to private-equity firms to sell Mexx, said two people with knowledge of the matter. Liz Claiborne bought Mexx in 2001, but would now like to sell it because the brand is losing money for years.

Mexx is the largest division of the American group, it generates approximately one third of total sales. Liz Claiborne also owns brands like Juicy Couture, Lucky Brand and Kate Spade.

Liz Claiborne, which in April posted its 14th straight quarterly loss, values the Mexx business at around $100 million. The New York listed company would seek to retain a small stake in Mexx.

Ever since acquiring Mexx in 2001 more than $300 million has been paid for the brand. According to Bloomberg, Leonard Green & Partners, Sun Capital and Golden Gate Capital are among the firms that have explored a possible acquisition of Dutch based Mexx.

When the Secon Group was liquidated earlier this year rumors increased that former Indian owners Rattan Chada and Adu Advaney would possibly buy back Mexx through the Fashion Fund investment vehicle in order to get Mexx back on track. It is not known whether this is a real option.

Founder Rattan Chadha left the company in 2005 after which the brand seamed to have lost it's glory. In the year 2000 Mexx had a 385 million euros turnover, in 2010 sales reported 130 million euros.

Mid 2009 Thomas Grote became Mexx' CEO and started his plans for reigniting the brand. He expects the company to climb as of Q3 2011 and to return to break-even in 2012.