(Reuters) – Coach Inc (COH.N) will change a corporate name to Tapestry Inc, it pronounced on Wednesday, as it creates a broader powerful for a high-end brands but diluting a iconic name famous especially for offered oppulance handbags.
The company’s shares were down 2 percent in early trade following a proclamation in that Tapestry will be a holding association that will residence a Coach, Kate Spade and Stuart Weitzman brands.
But amicable media reacted cruelly to a 76-year aged association changing a corporate temperament with many Twitter users criticizing a decision.
“Coach is changing a name to a renouned Carole King manuscript a terrible name for a leather bag maker! Tapestry,” pronounced one Twitter user SpecialK. (ht.ly/rfV230fNLmp)
Founded in a loft in Manhattan in 1941, Coach has grown into a multi-billion dollar company, building a business on a success of a Coach handbags that for many years were widely desired by upscale women shoppers around a world.
Coach, however, has mislaid some of a gleam in new years in partial due to a financial retrogression and increasing online shopping. The association is perplexing to recover a former excellence buy shopping new brands, gripping a parsimonious lid on discounting and pulling behind from dialect stores.
Coach bought smaller opposition Kate Spade for $2.4 billion progressing this year and shoemaker Stuart Weitzman in 2015, broadening a portfolio and transforming it into an upscale conform residence rather than only a purse retailer.
“We are now during a defining impulse in a corporate reinvention, carrying developed from a mono-brand specialty tradesman to a loyal residence of emotional, fascinating brands,” pronounced Chief Executive officer Victor Luis.
The association pronounced on Wednesday a name change will go into outcome on Oct. 31 and will start trade underneath a ticker pitch “TPR” on a New York Stock Exchange.
Reporting by Siddharth Cavale in Bengaluru; Editing by Saumyadeb Chakrabarty