Luxury Retailer Kate Spade Is Considering A Sale
Due to increased pressure from an activist investor, Kate Spade & Co. is considering a sale of the company.
In November, hedge fund Caerus Investors pushed the company to sell, citing the retailer’s drastic drop in sales since mid-2014 and the market’s lack of faith in management as cause for concern, the Wall Street Journal reports. The luxury handbag maker has partnered with an investment bank to reach out to potential buyers, including retailers — though it's still in the early stages.
According to MarketWatch, companies including American footwear and apparel corporations VF Corp. and PVH Corp., and retailers Michael Kors and Coach Inc. are all possible candidates for the buyout, each having expressed interest in a branded acquisition, Wells Fargo analyst Ike Boruchow wrote in a recent report. “While other brands are seeing negative comps, pulling back on wholesale exposure or restructuring, Kate continues to grow,” Boruchow said. [WSJ]
