Liz Claiborne Inc. (LIZ) said J.C. Penney Co. (JCP) will be the exclusive department-store outlet for two namesake brands in the U.S., while QVC, the cable shopping network, will handle distribution of the apparel maker's New York brand.

The news sent the apparel maker's beaten-down shares up 15% premarket to $5.96. The stock through Wednesday had doubled this year, but remained down 62% from same period a year earlier as Liz Claiborne restructured its operations amid slumping demand.

The company has been undergoing a monthlong review that had spurred speculation about whether any of its units may be sold. Turnaround firm Alvarez & Marsal was brought in by the debt-heavy apparel retailer at the behest of its banks to assess how Liz Claiborne can improve working capital.

In August, Liz Claiborne's credit ratings were cut deeper into junk territory by Moody's Investors Service because of the company's second-quarter results and weak outlook for the second half. Liz Claiborne's seventh-straight quarterly loss was a wider than a year earlier on falling revenue and flat margins, as it unveiled sweeping restructuring strokes to save $100 million.

J.C. Penney will exclusively carry the Liz Claiborne and Claiborne brands starting in August. The pact has a term up to 10 years, and after five years J.C. Penney has the option to buy license trademarks. In return, Liz Claiborne will get design service fees, royalties and a percent, plus guaranteed minimums in gross-profit sharing. Liz Claiborne is retaining its marketing and distribution rights internationally.

QVC, a multimedia retailer known for its home-shopping television channel, next fall will start to offer Liz Claiborne's New York brand, a collaboration with famous designer Isaac Mizrahi. Mizrahi will design the line of premium clothes, accessories and home products, and QVC will merchandise and source the product.

Liz Claiborne has been trying with little success to rebuild its brands, some of which were struggling before the recession. The company has cut jobs and streamlined operations as it contends with lower buying by consumers and less inventory stocking by department stores.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com