UPDATE 1-Liz Claiborne, Li & Fung in sourcing pact

* Li & Fung to act as Liz Claiborne’s sourcing agent * Deal covers Liz Claiborne apparel, accessories brands

* Liz Claiborne to get $75 mln on completion, more later

Feb 23 (Reuters) - Fashion company Liz Claiborne Inc LIZ.N said Hong Kong-based consumer goods exporter Li & Fung 0494.HK agreed to pay $75 million to become its primary global sourcing agent for apparel and accessories.

Under the long-term, exclusive agreement, Li & Fung, which supplies consumer products to retailers such as Wal-Mart WMT.N and Target TGT.N, will also pay an additional $8 million within 14 days after completion of the deal.

Except the company’s jewelry product lines, all brands in the Liz Claiborne portfolio such as Lucky Brand, Juicy Couture, Kate Spade and the Isaac Mirzahi designed by Liz Claiborne New York are covered by the agreement, Liz Claiborne said in a statement.

Liz Claiborne will pay an agency commission of its product purchases through Li & Fung.

In November last year, Liz Claiborne, which recently announced plans to cut 8 percent of its U.S. workforce, had said Li & Fung would act as primary global apparel sourcing agent for its Mexx brand.

Shares of Liz Claiborne closed at $2.33 Friday on the New York Stock Exchange. (Reporting by Mihir Dalal in Bangalore; Editing by Amitha Rajan)