Rumors of Kate Spade & Co. Sale Raise Stock
Kate Spade & Co. stock went up 23 percent on Wednesday as rumors of a sale spread through the market. The Wall Street Journal reported that company is working with an investment bank and has contacted possible buyers, including other retailers according to a source close to the matter. Kate Spade and Co. was valued at $1.9 billion at the time of the report, but its value has dropped since.
Total Retail’s Take: This shouldn’t come as a complete shock. Last month, activist investor Caerus Investors suggested that the firm should entertain a sale and that it had been underperforming its peers. It’s difficult as of late for retailers with significant department store exposure because of decreased foot traffic. We will be sure to keep you update don any developments with Kate Spade.