The long-awaited sale of Kate Spade LLC appears to be nearing fruition.
Industry sources indicated Monday that Spade could be finalizing a contract with Liz Claiborne Inc., with one minor issue left to be ironed out.
Spade, the New York-based accessories firm founded in 1993 by husband-and-wife team Kate and Andy Spade, and two other partners, Pamela Bell and Elyce Arons, was put on the market by Neiman Marcus Group in September 2005.
Neiman Marcus acquired a 56 percent stake in Spade in 1999 for $33.6 million from Alex Noel Inc. Texas Pacific Group and Warburg Pincus LLC, two equity firms, bought NMG for $5.1 billion in May 2005.
Industry sources have said the reasons for the drawn-out sale were that the brand had lost its design appeal and because of discussions over the Spades’ roll in the company under any new owner. Other sources said that Spade was not worth the reported $100 million asking price. However, in July a Spade spokeswoman told WWD, “The selling price has absolutely nothing to do with why that sale has not been finalized. This next move for Kate Spade is an important one, and they want to make sure it is in the best interest of the brands. Kate and Andy Spade and their partners are not in a hurry to negotiate the future of their company, but are only interested in the right strategic partners.”
VF Corp. and Accessory Network Group also were said to be looking at Spade earlier this year.
Kate Spade, a former fashion editor, became one of fashion’s darlings in the early Nineties with her signature utilitarian, but feminine, nylon bags bearing the brand’s minimal black-and-white logo. The company has since veered into myriad categories, including footwear, eyewear, fragrance, tabletop, stationery and a luxe line called Collect, featuring exotic skins.
Spade has 19 Spade stores, one Jack Spade men’s store and four outlet stores.