Kate Spade Restructures China Business

Kate Spade & Company and Walton Brown have created a number of joint ventures focused on growing the Kate Spade brand in Greater China.

April 6, 2018

Kate Spade Restructures China Business

Kate Spade & Company and Walton Brown, a subsidiary of Asian brand management group The Lane Crawford Joyce Group, have created a number of joint ventures focused on growing the Kate Spade brand in Greater China.

The newly formed partnership will establish a network of stores in key cities across China, Hong Kong, Macau and Taiwan.

In order to facilitate these plans, Kate Spade & Company agreed to acquire its current partner in China, E-Land Fashion China's current 60 percent interest in the Kate Space China brand.

This move and the partnership with Walton Brown will align Kate Spade's existing businesses in China and Hong Kong, Macau and Taiwan under one combined structure with both Kate Spade Hong Kong and Walton Brown owning 50 percent of Kate Spade China.

Kate Spade & Company will continue wholesale distribution to the joint venture in China and expects to begin wholesale distribution to Hong Kong, Macau and Taiwan through the joint venture during the first quarter of this year.

"This partnership

is a pivotal next step as Kate Spade & Company continues to advance along a key axis of our growth strategy–geographic expansion–while also continuing our partnered approach to margin expansion," says Craig A. Leavitt, chief executive officer, Kate Spade & Company. "Walton Brown is the right strategic partner as we position Kate Spade & Company for sustainable growth, allowing us to take a holistic approach to expansion, influence consumers and leverage resources across the Greater China region."

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