Companies such as Michael Kors and Kate Spade have eaten into New York-based Coach’s market share in North America with their affordable and trendier handbags and accessories.

Coach is realigning its business by cutting promotions and shutting underperforming stores.

The company said on January 6 it would make initial cash payment of about $530 million to Sycamore Partners and pay up to $44 million on achievement of certain revenue targets over the three years after the acquisition closes.

Sycamore Partners acquired Stuart Weitzman last year as part of its $2.2 billion purchase of Jones Group, the fashion company that owns retail chains Nine West and Jones New York.