In what seemed like what was going to be a quickie sale of itself to Coach, handbag and accessories giant Kate Spade has put the deal on hold to better position itself in ongoing negotiations.
To be clear, the sale is not off the table, for now. Coach, a company who is looking to expand its product assortment, price points and reach a younger demographic, made an offer of last week. It seemed at the time, the sale would move ahead rapidly. Now, however, as CNBC reports, “Giving the sale process more time allows potential buyers to better assess Kate Spade’s first-quarter sales and negotiate a potential deal.”
Yesterday, shares dropped 1.85/% to $22.80, giving Kate Spade a value of about $2.9 billion. The company wants to make sure it, literally, doesn’t sell itself short of that valuation.
The company has come under fire from its majority shareholder Caerus Investors following disappointing sales in recent years. Since rumors of the sale started late last year, Coach was a top contender with other possible buyers like Kering, PVH and Michael Kors, who is said to still be a possibility.