NEW YORK (TheStreet) -- Shares of Michael Kors (KORS - Get Report) are down more than 4% midmorning Friday following news that a major shareholder, private-equity firm Sportswear Holdings, is selling its stake in the fashion retailer.
Sportswear Holdings plans to sell 11.6 million shares for $76.75 a share in a secondary offering.
On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said the selloff only adds to the recent pain of Kors shareholders.
Read More: 10 Stocks Carl Icahn Loves in 2014The stock peaked near $100 just a few a months ago and has declined precipitously ever since. "I am a little nervous," Cramer said, noting that two members of the Kors board who represented Sportwear Holdings have resigned. Turning to El Pollo Loco (LOCO) , Cramer said the company reported a "good quarter" and raised guidance, but Cramer added that he would consider taking profits between now and the company's next earnings report. Read More: Why Michael Kors Stock Is Down in After-Hours Trading He concluded that he still likes Chipotle Mexican Grill (CMG) and Jack In The Box (JACK) . At the time of publication, Cramer's Action Alerts PLUS had no positions in stocks mentioned. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell