Kate Spade Sold to Liz Claiborne
You know what they say. Do one thing and do it well. Kate Spade had that in spades. Cute, preppie, classic-with-a-twist designer handbags and totes. The signature black tag on the outside was the sure sign of great taste. But then she and hubbie Jack decided to branch out – way out – all the way to stationery, baby gear, men’s travel accesssories and more. And with that, the focus shifted away from their raison d’etre.
Kate Spade was a subsidiary of Neiman Marcus, and the retail giant has been trying to offload the brand for about 18 months. They finally found a buyer – Liz Claiborne – which owns brands like Lucky Brand Jeans, C&C California, Ellen Tracy, Dana Buchman and Laundry by Shelli Segal. The selling price was $124 million. There is some debate brewing over whether Liz Claiborne picked up the Spade label for a song, or whether they overpaid.
Adding a handbag and accessories company to their stable of brands is a smart move for Liz Claiborne, as they haven’t been a major player in this market. What happens to the quality and design of Kate Spade will be interesting to watch.
Liz Claiborne, Kate Spade, Kate Spade Bag, Kate Spade Tote, David Spade, Neiman Marcus, Lucky Brand Jeans, C&C California, Ellen Tracy, Dana Buchman, Laundry by Shelli Segal
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