WSJ : Kate Spade Explores Sale

(RTTNews) - High-end handbag and apparel maker Kate Spade & Co. (KATE) is exploring a sale of the company, the Wall street Journal reported citing people familiar with the matter.

The New York company is working with an investment bank and has contacted possible buyers, including other retailers, the report said. The process is at an early stage.

In November, activist hedge fund Caerus Investors disclosed a small stake in Kate Spade and called for the company to consider a sale.

The report indicated that Kate Spade could attract a number of potential buyers. Coach Inc. has long been considered a good home for Kate Spade, given Coach's focus on handbags and accessories and its department-store presence. Coach could also help Kate expand abroad. But, Kate Spade could also attract luxury accessory makers, foreign buyers and buyout firms, in part because of its manageable size.