Liz Claiborne-J.C. Penney Deal Juices Shares

NEW YORK (TheStreet) -- Liz Claiborne(LIZ Quote) is attempting to add some cachet back to its namesake brand by selling it exclusively at J.C. Penney(JCP Quote).

The news sent shares of the apparel maker spiking 25.4% to $6.52 in morning trading.

Liz, which has been stacking up losses amid the recession, hopes the 10-year deal with the department store will help reverse its downward spiral.

Under the agreement, Liz will sell its line of women's wear and its Liz & Co and Concepts by Claiborne only at J.C. Penny. It will also move its higher-end Liz Claiborne New York brand, which is designed by Isaac Mizrahi, to TV shopping network QVC. The move would pull the lines from department stores like Macy's(M Quote) and Dillard's(DDS Quote).

Liz expects to continue to record a loss in 2009, but says it will swing to profit in 2010 because of the deal.

An expanded line of Claiborne-branded items will be available at J.C. Penney next fall, but the line will remain in other department stores until after the holiday season.

Liz Claiborne also makes apparel and accessories under its Juicy Couture and Kate Spade brands.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.