Oct 7 - Fashion company Fifth & Pacific unloads Juicy Couture for $195 million to focus more on Kate Spade. Conway G. Gittens reports.
The Daily Digit is $195 million. That's how much it took fashion company Fifth & Pacific to unload Juicy Couture. Known for its velour track suits and urban feel, Juicy's sales plummeted in recent years, even though it was still a top selling brand last year. Attempts to stop the sales slide failed, weighing on profits, prompting Fifth & Pacific to put Juicy on the sales block. Enter - buyer Authentic Brands Group, with other name tags such as Adrienne Vittadini and Prince. Industry insiders say the transaction is part of a bigger trend in the fashion world, where everyone wants to copy the success of Micheal Kors. Analysts say, for Fifth & Pacific this means betting on look-alike Kate Spade and using the proceeds to expand that brand.