As part of its debt reduction plan, retailer Liz Claiborne Inc. amended its long-term license agreement with Elizabeth Arden Inc. and sold the trademarks for Curve fragrance brands and selected other smaller fragrance brands to the company for $58.4 million in cash. The Elizabeth Arden cash will be used to pay down debt, which will support the company’s goal of ending 2011 with lower debt levels than last year.

The company also entered into a distribution agreement with Li & Fung Ltd. for distribution in the US for the company’s owned retail stores and wholesale business. The initiative will significantly reduce its fixed cost base for distribution, according to the company.

The Liz Claiborne global portfolio also includes Juicy Couture, kate spade, Lucky Brand and Mexx. Other amendments to the license agreement with Elizabeth Arden include a lower effective royalty rate associated with the fragrance brands that remain under license, including Juicy Couture and Lucky Brand fragrances. The amended agreement will reduce future minimum guaranteed royalties for the term of the license and will require a pre-payment of certain royalties.