Kate Spade plans to stay on indefinitely at the company that bears her name in a “co-creative director” role, according to William McComb, chief executive of Liz Claiborne Inc., which acquired the handbag maker in December.

Spade and her husband Andy, who had joined the company in 1996 as president and creative director, have extended their contract indefinitely, and are working closely with McComb to find a senior management team for the brand, including a new chief executive.

McComb gave the news at an analyst meeting in New York on Wednesday where he announced that Liz was exploring options for 16 of its apparel brands and increasing investment on four star brands, namely Kate Spade, Mexx, Lucky Brand Jeans and Juicy Couture.

“Together we expect to make an announcement on (a senior management team) … within a couple weeks,” McComb said.

“Kate and Andy have ideas about what they would like to do next. They are entrepreneurs. They love the zero-to-sixty,” McComb said. “But it’s still a business that bears the name of Kate Spade and they would like affiliation in some fashion.”

McComb said they were planning to name the new management team and then define the specifics of the Spades’ new role.

Liz Claiborne is expecting the Kate Spade brand, which currently has annual sales of about $90 million, to reach about $250 million to $350 million  by 2010. Jill Granoff, who heads the “direct brands” division, said the company is targeting 120 stores by 2010, up from about 40 now.

By comparison, larger rival Coach Inc. has over 300 stores, Granoff said.