As per an inside source, Coach Inc., an accessories retailer, has almost finalised a $600m agreement to acquire Stuart Weitzman Holdings LLC, a women’s luxury shoe company — a news which could be announced anytime this week.
Based in New York and famous for its Poppy handbags, Coach has had problems keeping up with its luxury competitors, especially the fast-growing and affordable Michael Kors Holdings Ltd. and Kate Spade & Co., whose handbags are earning ‘hot cake’ status in North America.
Last year, Stuart Weitzman, which has 45 retail outlets in the US and also operates 62 elsewhere, was bought by Sycamore Partners as part of a total deal worth $2.2bn that essentially saw the purchase of Jones Group Inc., a fashion firm owning Jones New York and Nine West.
The deal was reported on Monday by The Wall Street Journal.
Brown Shoe Company Inc., competing with the likes of financial investors and private equity firms, was trying to get hold of Stuart Weitzman, reported Reuters in early December 2014.
Incidentally, as a result of a news website report, which said that France’s LVMH Moet Hennessy Louis Vuitton SA, the luxury products company, was showing interest to acquire Coach, the handbag maker’s shares had shot up in December.
On Monday, Coach shares closed down at $36.73 by 1.6%.