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What: Shares of Liz Claiborne (NYSE: LIZ) soared 30% on Wednesday after agreeing to sell more of its major brands -- including its namesake line -- to J.C. Penney (NYSE: JCP) for $328 million.

So what: The move will allow the embattled Liz Claiborne, which hasn't reported an annual profit since 2006, to significantly reduce its debt load and focus on its high-end premium brands -- namely, Juicy Couture, Lucky, and kate spade. "Over the past few years, we have worked diligently to turn this into a more efficient, dynamic, brand-centric, retail-based company, and today marks the culmination of these efforts," CEO William McComb said.

Now what: Liz Claiborne should certainly be on better footing soon. While management lowered its full-year EBITDA guidance as a result of the sale, it expects net debt at the end of the year to be between $270 million and $290 million, down from about $740 million as it stands now. The company said it is even looking to change its name, hoping that a luxury focus will help fuel a turnaround as lower-end shoppers pull back on spending.

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