Women’s Wear Daily
04.16.2014
fashion-scoops
fashion-scoops

Kate Spade Completes Asian Deal

The company has established an Asian regional headquarters in Hong Kong and has recruited local talent to manage the operations purchased from Globalluxe.

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KATE SPADE COMPLETES ASIAN DEAL: As expected, Kate Spade, LLC and Kate Spade Hong Kong Ltd., both wholly-owned subsidiaries of Fifth & Pacific Cos., have acquired the Kate Spade businesses in Hong Kong, Macau, Taiwan, Malaysia, Singapore, Indonesia and Thailand from their long term partner Globalluxe. The total transaction value was about $34 million, including $4 million for working capital and other previously agreed adjustments with the payment due in the first quarter of 2014.

In Hong Kong, Macau and Taiwan, Kate Spade will directly own and operate the related businesses previously operated by Globalluxe. In Singapore, Malaysia and Indonesia, Kate Spade said that Valiram, its new partner in these countries, will operate Kate Spade New York and Kate Spade Saturday through distribution agreements and will fund about $1.5 million of the transaction value to acquire operating assets in certain regions. In Thailand, Kate Spade has forged a direct distribution agreement with AT Luxury, Globalluxe’s current sub-distributor. For fiscal year 2013, Globalluxe’s retail net sales for the Kate Spade New York brand were about $44 million, a gain of 25 percent from the prior fiscal year on a local currency basis. Globalluxe and its distribution partners operated six stores and one concession in Hong Kong, one concession in Taiwan, one store in Macau, two stores and one concession in Singapore, two stores in Malaysia, three stores and one concession in Indonesia, and two stores and six concessions in Thailand.


Kate Spade has established an Asian regional headquarters in Hong Kong and has recruited local talent to manage the operations purchased from Globalluxe.

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