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Coach to Purchase Rival Kate Spade for $2.4 Billion

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It’s no secret that Kate Spade is up for sale. If you are unaware, Click here to catch up not this story!

Many of us had been curious about the future of fresh, young brand Kate Spade, and now you have your answer. Coach has bid on fashion lifestyle brand Kate Spade. Kate Spade was never in any financial trouble this buy out was simply to expand the brands value. Coach has expressed interest and offered $18.50 a share for the brand. Coach’s intensions are not to absorb Spade, but rather create a multi-brand fashion house. Both brands are very aware that consumers are more interested in fast fashion brands like H&M and this merge will make both low-luxury brands stronger.

Additionally, fashion buyers have also made the shift to purchase more high fashion brands like Gucci and Fendi. Unfortunately, being in the middle of the fashion spectrum is an awkward position both brands currently occupy.

Nothing is finalized yet, but if the deal goes through it could be worth around $2.4 billion. Stay tuned!

Which do you like better? Coach or Kate Spade?






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