Tiffany & Co. said on Friday it is buying bankrupt U.S. handbag maker Lambertson
Truex as the high-end jeweler seeks to expand its array of leather
goods.

Handbag designers Richard Lambertson and John Truex have already
joined Tiffany, where they will explore the development of a
collection of handbags and leather accessories to complement the
current assortment available at Tiffany, said Tiffany spokesman Mark
Aaron.

Aaron declined to give financial terms of the deal.

News of the acquisition was earlier reported by trade paper Women's Wear Daily.

Tiffany, known for its jewelry and distinctive light-blue boxes,
already sells a few leather items, including tote bags and passport
holders.

Aaron declined to discuss how the new bags would be branded or the
future of the Lambertson Truex boutique on New York's Madison Avenue,
saying it was too early.

Lambertson Truex bags are also sold at department stores including Bloomingdale's and Saks Fifth Avenue.

The company filed for Chapter 11 bankruptcy protection in March
after the economic downturn reduced demand for luxury goods. At that
time, Lambertson said it was formed in 2006 when Samsonite Corp
CMERNS.UL invested in it and took a majority stake in the business,
along with a significant amount of debt.

Tiffany shares were down 2 percent at $28.36 in early afternoon trading.

(Reporting by Martinne Geller; Editing by Derek Caney and Brian Moss)