UPDATE 2-Liz Claiborne hires Mizrahi in a loss to Target

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By Alexandria Sage and Nicole Maestri

LOS ANGELES, Jan 15 (Reuters) - Apparel maker Liz Claiborne Inc (LIZ.N: Quote, Profile, Research, Stock Buzz) stole Isaac Mizrahi away from Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) on Tuesday, naming the designer creative director of its Liz Claiborne brand in a move that ends Mizrahi's five-year deal with the mass-market chain.

The apparel company said it hired Mizrahi to help "revitalize" the Liz Claiborne brand, its traditional women's sportswear line that has faced sluggish sales in recent years amid a tired image and competition from private-label brands.

The move is a blow to Target, whose collaboration with Mizrahi pioneered the concept of designer fashion at mass- market retail chains, one that has been copied extensively by competitors.

At Liz Claiborne, Mizrahi will oversee the design and marketing functions for women's apparel, accessories and licensing. His first collection for the brand will arrive in stores in spring of 2009, the company said.

Mizrahi's apparel, accessory and shoe designs have been sold at Target since 2003. His Target collection will be available through the end of 2008.

It was not immediately clear how the loss of the well-known Mizrahi would affect the bottom line at Target.

"We just remain confident that we'll continue to drive sales and make great design affordable through our combination of own brands, signature national brands and our other design fashions," a Target spokeswoman said.