Michael Kors buys Jimmy Choo for $ 1.2 billion



07/25/2017 2:08 PM


American clothing retailer, Michael Kors, agreed to buy luxury footwear manufacturer Jimmy Choo for $ 1.2 billion, picking up the British brand launched in East London. The brand gained popularity thanks to celebrities such as Princess Diana.



Mike Mozart
Founded in the 1990s, the company of Malaysian designer Jimmy Choo (Zhou Yangjie) became famous for its luxury footwear, which is sold in in London, Paris, New York and Tokyo.

The company was put up for sale in April, after its majority shareholder JAB decided to concentrate mainly on consumer products.

At a price of 2.3 pounds sterling ($ 3) per share, the group will receive a premium of 36.5% to its share price, before the sale process was announced.

Michael Kors, once a popular brand of luxury and affordable clothing with an extremely popular line of women's handbags, recently struggled with the decline in sales and visitors to their stores.

In response, the company decided to expand its business by selling dresses and menswear, as well as investing in online business. Michael Kors stated that Jimmy Choo will continue to work in the same way as today, within the existing management team.

"Jimmy Choo is a landmark premier brand that offers great shoes, handbags and other accessories," said Michael Kors, Honorary Chairman and Chief Creative Officer.

source: reuters.com


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