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Kate Spade shares are losing ground in after-hours trading on Monday following a report that the retailer has extended the time frame for negotiations over a potential sale.

The company’s shares were down more than 8 per cent after the closing bell, on the heels of a report from Reuters that the handbag and accessories maker would spend a “few more weeks” discussing a potential sale following an offer last week from Coach.

The company, best known for colourful and quirky apparel and accessories, was urged to put itself up for sale by New York-based hedge fund Caerus Investors in November, citing the decline in shares over the previous two years brought about by “management’s inability to meet their own stated goals.” Kate Spade shares recently jumped on news that it was awaiting first-round bids.

Copyright The Financial Times Limited 2017. All rights reserved.

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