Retailer Neiman Marcus Group is close to a deal to sell off accessories firm Kate Spade to Liz Claiborne, The Wall Street Journal reported sources close to the deal as saying.

The reported sale price would be about US$120m, the sources said, adding that the terms of the purchase are still under discussion.

Claiborne, which is known for a wide variety apparel brands including Juicy Couture and Sigrid Olson, would benefit from adding a well-known handbag brand to its portfolio.

Kate Spade's founders recently sold off their stake in the business to Neiman Marcus.