Key Investor Pushes Kate Spade To Sell The Company
Kate Spade has had a rough couple of months, having cut prices on its formerly popular bags to push sales, and one investor is already rallying for the company’s sale.
Caerus Investors sent a letter to Kate Spade’s board of directors this week, saying it is frustrated by the firm’s failure to turn profits similar to rival companies like Coach, Barron's reports. Investor interest in the prospect of a sale is high, as share prices have jumped 9% to $18.09 since talk of a sale started circulating.
The letter says investors think the brand equity is strong but would be better handled by a larger and more experienced global player that can focus on growing the business. [Barron's]