Kate Spade & Co. announced on Thursday plans to close all 19 Kate Spade Saturday stores and all 12 of the company-owned and operated Jack Spade stores during the first half of 2015, a move the Wall Street Journal reported could cost the company up to $39 million.
By taking these actions, Kate Spade & Co. chief executive officer Craig A. Leavitt said, the company will be able to achieve its lifestyle brand vision and expand product categories.
The company is discontinuing Kate Spade Saturday as a standalone business. The lower-priced, younger offshoot brand will transition into a label within the Kate Spade New York brand, and will continue its e-commerce site during the wind down phase until the label is completely integrated.
Leavitt said, “We now have a better understanding of our customers’ weekend style, thanks to the hard work and contributions from the members of our Kate Spade Saturday family who developed commercially appealing products and attracted new customers through the Kate Spade Saturday business.”
The company is implementing a new business model for its 22-year-old Jack Spade men’s business that will involve expansion into a more complete lifestyle brand with more tailored clothing and dress furnishings. By tapping into its distribution network of retail partners and by expanding its e-commerce platform, the company said it sees no need to keep standalone Jack Spade locations. The brand’s e-commerce presence will continue with no changes.
Leavitt said, “We are committed to our men’s heritage and believe this category is an important part of our growth story and a complement to our thriving women’s business. With this new approach to distribution, Jack Spade is now better positioned to grow as we broaden our customer target.”