New York City-based Liz Claiborne's target price is more than 40% above J. Jill's $12.79-per-share closing price since the bid was made public. Trading of J. Jill shares topped $18 after the release of the offer.

This is not the first time Liz Claiborne has tried to buy J. Jill. In March, the company offered $17 per share and was "flatly rejected," according to a letter to J. Jill's board from Paul R. Charron, chairman and chief executive officer of Liz Claiborne. "Beyond providing J. Jill shareholders immediate liquidity at a significant premium, this strategic combination would enable us to rejuvenate J. Jill's well-regarded but underperforming brand," says Charron's letter.

While J. Jill's year-over-year 4.7% same-store sales gain in its most recent quarter outperformed many of its peers, the retailer, which targets women over 35 years old, has had profitability problems. During its Q3, which ended Sept. 24, it lost $4.9 million, dropping it to a nine-month income shortfall of $1.5 million.