November 05, 2019 / By mobanmarket
Having only just taken over the remaining 44 percent stake in accessories specialist Kate Spade, Neiman Marcus has sold the company to Liz Claiborne for $125 million (£65.5 million). Claiborne is expected to expand the brand’s presence, like it did for Juicy Couture and Lucky Brand Jeans. Sources have said the $4.8 billion fashion giant will likely extend the product range to include jewellery and sportswear, reports WWD. Claiborne could not be reached for comment. The same sources have also indicated that the US retailer believes in the global potential of the brand, which is available at Harvey Nichols in London . The brand currently has 19 stores in the US , four outlet stores and one Jack Spade store. Claiborne is said to be planning to open up to 200 stores in the US , Canada , Europe, Asia and the Middle East .
According to WWD, Kate and Andy Spade, the husband and wife team that founded the New York-based company in 1993, have signed a service agreement with Claiborne. This means they will stay with the company until mid 2007. Claiborne is said to want Kate to stay on as the face of the brand, but it is not yet known what Andy Spade’s role will be.
Kate Spade first shot to fame with her nylon handbags adorned with a minimalist black-and-white label. The brand soon evolved to include more colourful items, bags made from different materials and came to include other accessories like eyewear, footwear, home products and stationery. Later on, the company also launched Jack Spade, a men’s accessories brand. Together, the two brands generated net sales of around $84 million in the year ended 30 July 2006. In recent years, the brand has been criticized for raising prices and moving away from its original handbag designs, but is now believed to be remedying that.
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