Spades Sell Out to Neiman Marcus

The founders of Kate Spade have sold their stake to majority owner the Neiman Marcus Group, The Post has learned.

Kate and Andy Spade along with two other partners, Pamela Bell and Elyce Arons, who together owned 44 percent of the company, exercised a put option - the right to sell their shares at a specified price by a certain date, sources said.

The negotiations over the put option, which took place this summer, temporarily halted the auction for Kate Spade, which Neiman Marcus put up for sale in September 2005.

Citigroup was hired to determine the value of the minority stake, an amount that as yet has not been disclosed, but one that places a valuation on the entire company in excess of $130 million, sources said.

Now that Neiman Marcus has taken full ownership of the company, up from a previous stake of 56 percent, the sale process for Kate Spade, known for its rectangular handbags and preppy chic style, is expected to heat up.

Liz Claiborne is said to be a lead contender, but the field is also open to other bidders, sources said.

Whether or not the Spades, who are both intricately involved in the business, both from design and management standpoints, decide to remain with the company will depend largely on the new owner.

"Our conscious decision to put our stock to the Neiman Marcus Group allows us to better determine our future and what we believe is right for the company and the brands," Andy Spade said.

Source: nypost.com