Capri Holdings Ltd (NYSE:CPRI) shares are trading higher Monday following a report suggesting the company is exploring a sale of two of its upscale accessories and apparel brands.

What Happened: According to a Women's Wear Daily report, Capri Holdings is working with Barclays to find buyers for its Versace and Jimmy Choo businesses.

The report indicates that the company is in the beginning stages of searching for a potential buyer. It's not clear if the brands would be sold in a package deal or individually.

A source familiar with the matter reportedly said Capri has set up a data room with confidential information on the businesses for potential buyers. The company reportedly aims to see indications of interest from potential buyers before the holidays.

Women's Wear Daily reported that it's possible a buyer could come in and make a deal for the businesses, but it's also possible that Barclays could end up auctioning the businesses in a process that would involve multiple offers over multiple rounds.

Capri also owns the Michael Kors brand, which is by far its biggest business. The report indicates that a potential sale of Versace and Jimmy Choo could give the company the time and resources needed to implement turnaround plans at Michael Kors.

Capri shares dropped nearly 50% in October after a U.S. judge blocked the company's planned merger with Tapestry Inc (NYSE:TPR), ruling that a merger between the companies would hurt competition in the U.S. handbag space. Capri and Tapestry are the largest handbag makers in the U.S.

CPRI Price Action: Capri shares were up 7.33% at $22.93 at the time of publication, according to Benzinga Pro.

Photo: Shane Adams from Flickr.