NEW YORK (TheStreet) -- Shares of Michael Kors (KORS) 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.
The 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.
At the time of publication, Cramer's Action Alerts PLUS had no positions in stocks mentioned.
-- Written by Bret Kenwell in Petoskey, Mich.