Shares of Kate Spade (KATE) nose-dived Tuesday after a report a day earlier indicated the apparel and handbag company would take more time to work out possible terms of a sale, while Ralph Lauren (RL) said it’s examining new approaches to its retail stores.
The moves are the latest that reflect the retail industry’s struggles with physical stores amid competition from off-price chains, industrywide discounting and online retailers like Amazon (AMZN). Some analysts also say many retailers have far more stores than are needed.
Reuters reported late Monday that Kate Spade would give those interested in acquiring Kate Spade more time to get a clearer picture of the company’s finances, after Coach (COH) last week offered to buy the company. Michael Kors (KORS) has also expressed interest in buying Kate Spade, but it hasn’t been aggressive about a purchase as Coach has, Reuters added.
Shares crashed 15% to 19.29 in the stock market today, nearly wiping out the gains seen since buyout talk first surfaced, as any takeover price is expected to be below its market…