advertisement
advertisement

Kate Spade To Shutter Low-Priced Offshoot And Men’s Stores

Kate Spade To Shutter Low-Priced Offshoot And Men’s Stores
[Top photo: Flickr user Bex Walton]

Kate Spade Co. announced today that it will shutter its 19 Kate Spade Saturday stores, which offer a lower-priced, more casual selection of clothing compared with the main Kate Spade line. The company’s 22-year-old menswear brand, Jack Spade, will also close all 12 of its stores.

Flickr user Shinya Suzuki

It’s a surprising move that could cost the company up to $39 million, according to the Wall Street Journal. The closures come after a weak sales forecast for 2015. It’s a common pattern for brands born online that open too many brick-and-mortar stores too soon, as Racked points out–Kate Spade Saturday launched digitally two years ago, then opened retail shops in the States several months later. Last week, Gap announced the shuttering of the sole brick-and-mortar store of its e-commerce website Piperlime. Earlier this month, C. Wonder, the “revenge retail” e-commerce brand of Tory Burch’s ex-husband Chris Burch, filed for bankruptcy.

The company said in a statement that the “key elements of Kate Spade Saturday’s success” will be incorporated into the main Kate Spade line. Jack Spade will pursue “a new business model . . . to leverage the distribution network of its retail partners and expand its e-commerce platform.” The company will focus on its flagship kate spade new york brand.

[via WSJ, Fashionista]

advertisement