Handbag firm Kate Spade's founders have sold off their stake in the business to the company's majority owner, retailer Neiman Marcus Group, The New York Post reported.

Neither Kate and Andy Spade nor Neiman have revealed the price of the transaction but the report valued the business at more than US$130m, citing unidentified sources.

The sale of the handbag label was halted in June as the Spades and Neiman discussed terms of the sale deal.