New Details Revealed About Reed Krakoff's Split From Coach

It sounds like the Coach/Reed Krakoff split may not have been as amicable as it seemed.
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Hayley Phelan
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It sounds like the Coach/Reed Krakoff split may not have been as amicable as it seemed.
Photo: Getty

Photo: Getty

It sounds like the Coach/Reed Krakoff split may not have been as amicable as it seemed.

When Krakoff's exit was announced, Coach said it was merely "exploring" strategic options for the sale the of designer's eponymous line, which is owned by the company. Now, however, it sounds like Coach wants to unload the label as soon as possible--and, according to Bloomberg, they're holding much of Krakoff's multi-million dollar bonus hostage in the meantime.

In a regulatory filing with the U.S. Securities and Exchange Commission, Coach said that unless a binding agreement for the sale of the Reed Krakoff label is reached by July 29, the company will reduce the designer's bonus by $3 million. Coach said Krakoff's bonus is 200% his salary--Bloomberg notes that in September, the company said the designer's salary was $2.85 million. So, that puts his would-be bonus at around $5.7 million--which means Coach is threatening to take away more than half. (Oh and, yeah, we feel poor).

In the same filing with the SEC, the company revealed that it was Krakoff who decided not to renew his contract, which expires June 2014.

Needless to say, newly-appointed creative director Stuart Vevers certainly has work cut out for him when he steps into Krakoff's old role.