Liz Claiborne Inc. (LIZ) is closing a Rhode Island jewelry distribution center and shifting the business to another center as part of the apparel retailer's slimming down efforts.

About 100 jobs will be eliminated as Liz Claiborne shuts the facility in the second quarter of next year.

The move is being taken to "better align our distribution capabilities with the realities of the current economic environment," Liz Claiborne spokeswoman Jane Randel said.

Liz Claiborne had said in August it would be taking further steps to streamline operations.

The retailer, which has been struggling with its own brand issues as well as the recession, now has 12,500 employees compared with 18,000 at the end of 2006.

Earlier this month, Liz Claiborne posted a much wider-than-expected third-quarter loss, part of a run of losses the retailer has been experiencing. Chief Executive Bill McComb at that time stopped short of saying the company could return to profitability next year, but did indicate that new plans for the Liz namesake line, in which J.C. Penney Co. (JCP) will be the only U.S. department store to carry and expand the brand, should allow that part of the business to show earnings in 2010.

The company's own outlet stores could show a profit by late next year or soon after as they sell more of the new Isaac Mizrahi-designed Liz line after clearing out old product, McComb said.

Liz Claiborne shares are off 0.6% to $5.12.

-Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com
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