Neiman acquires remainder Kate Spade

Neiman Marcus has agreed to acquire the remaining 44 percent of Kate Spade that it does not yet own. It will pay about $59 million (£31 million) for the remaining shares of the accessories specialist, whose value is estimated at $134 million. The department store group had acquired 56 percent of the company in 1999 for $33.6 million. In 2005, owners Kate and Andy Spade and their partners, Pamela Bell and Elyce Arons, chose a put option, which specifies a sell price at a particular date. "We chose to put our stock to Neiman Marcus Group and are pleased with the valuation place on our 44 percent of the company," chief executive Andy Spade told WWD. He said the focus would now be on running the business and the future of the brand.

Neiman Marcus Group is auctioning off Kate Spade and, according to WWD, Liz Claiborne is said to be the most likely candidate to acquire the business. Meanwhile, both Kate and Andy Spade are under contract with Neiman Marcus, although whether they intend to stay with the company is unclear. If they stay and the company is sold, they will have to renegotiate their contracts with the new owners.