NEW YORK — Liz Claiborne Inc. is among the firms looking into buying Kate Spade, industry sources said Wednesday.
Claiborne remains hungry for an acquisition, particularly after getting outbid by Talbots for J. Jill in February.
A spokeswoman at Claiborne would not comment on the speculation. Peter J. Solomon, the investment firm handling the sale of Kate Spade, also declined comment.
In September, the Neiman Marcus Group, which purchased a majority interest in Kate Spade in 1999 for $33.6 million, put it up for sale. Texas Pacific Group and Warburg Pincus, two equity firms, acquired NMG in May for $5.1 billion and are still seeking a sale of the 13-year-old Kate Spade business.
According to an industry source, one or two other companies are also in talks about acquiring the accessories firm, where Andy Spade is the chief executive officer and Kate Spade is the designer. At one time, there was a report that Jones Apparel Group was interested in Kate Spade, but Jones has put itself up for sale.
The source said, “The Spades want to continue to play a role in the company after it’s sold.”
The brand has aggressively expanded into eyewear, footwear, home, stationery, hair accessories and ready-to-wear, as well as opening its own boutiques. There is also the Jack Spade division of Kate Spade that sells men’s leather goods and other accessories.
Since the 30-year-old Claiborne company introduced its first accessories — handbags, small leather goods and fashion items like scarves, belts and hats — in 1980 under its namesake label, it has moved deftly to find new opportunities under not just the Liz Claiborne moniker but its growing portfolio of brands. Today, the $4.85 billion firm offers everything from handbags to small leather goods; scarves, belts and hats; cold-weather products; hair items; women’s and men’s jewelry, even dog sweaters and canine carriers from a full range of brands. Claiborne has several sportswear and jean labels that also offer accessories, including Juicy Couture, Ellen Tracy, Sigrid Olsen, Lucky Brand Jeans and Laundry by Shelli Segal. However, Claiborne does not have a brand that is primarily handbag and accessories driven.
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As reported, Kate Spade generated $275 million in retail sales for the fiscal year ending July 31. It was anticipating a 40 percent increase in retail sales for this year.
Neiman Marcus is also selling its Laura Mercier brand.
Neiman’s has said “there could be no assurance that this process will result in any specific transaction.”