Sara Lee to Close Mark Cross Leather Unit

Sara Lee Corp. will shut its Mark Cross leather-goods business and close its seven stores by February after failing to find a buyer for the unit. The closing comes four years after Sara Lee bought the 152-year-old maker of handbags and briefcases and six months after the Chicago-based company started seeking a buyer for it. Sara Lee acquired Mark Cross to fill a higher-end market than its Coach line, the company said. However, Coach has appealed increasingly to Mark Cross customers. “Coach may have been perceived as offering basic handbags and briefcases, but now its lines have begun to offer a more elegant alternative and we think it is addressing that niche,” the company said. The Mark Cross and Coach units had combined revenue of more than $500 million last year. Some Mark Cross stores may be converted to Coach stores. Sara Lee stock rose $1 to close at $41 on the NYSE.