New York Retailer Coach to Buy Shoemaker Stuart Weitzman Holdings
Published By : 06 Jan 2015 | Published By : QYRESEARCH
Now York based accessories retailer company Coach is about to close a deal to buy Stuart Weitzman Holdings, a widely renowned women’s luxury shoe company, for nearly US$600 million. The people familiar with the matter also stated that the deal could be announced early this week.
Coach, widely popular for its Poppy handbags, has been struggling for the past few years to keep up with the high competition in the market and growing popularity of its fast-growing competitors featuring affordable luxury items in the market. Particularly, companies such as Michael Kors Holdings and Kate Spade & Co, are growing rapidly in the North American market due to their handbags.
Stuart Weitzman was acquired by the buyout firm Sycamore Partners last year as a part of a US$2.2 billion purchase of Jones Group, a fashion business that owns retail chains Jones new York and Nine West.
Stuart Weitzman currently features its products through 45 retail shops across the US and 62 elsewhere. The deal was reported by the Wall Street Journal earlier today.
Early in December last year, news had surfaced that the footwear retailer Brown Shoe Company sought to acquire Stuart Weitzman Holdings. At this time, Brown Shoe Company was competing against quite a few other potential companies who were also interested in acquiring Stuart Weitzman, including financial investors and private equity firms.
The struggling New York retailer Coach observed a hike in its shares in December last year when a news website related with the retail industry stated that French luxury brand LVMH Moet Hennessy Louis Vuitton was interested in buying it.