Michael Kors Buys British High Fashion House Jimmy Choo for $ 1.2 Billion
Well this has got to be the most disappointing news in the world of fashion since majority of the collections at New York fashion week earlier this year. It’s being reported that Michael Kors has agreed to buy British high fashion house, Jimmy Choo, for 896 million pounds, or about $1.2 billion.
This is the latest push by an American high-end fashion house to find sources of growth in an increasingly competitive retail landscape.
The news isn’t surprising as Michael Kors faced plummeting sales over the past few years, which was a hard hit for the once runway leader of the “accessible luxury market.”
Jimmy Choo was founded in 1996 by Tamara Mellon, who was the accessories editor at British Vogue at the time. She joined forces with Malaysian business man Jimmy Choo, who left the company in 2001.
Tamara sold her stake in 2011 after a bitter fallout with fellow board members about the way in which the company was being run and the brand has since been ran by various private equity firms before becoming the first luxury footwear brand to list on a public market in 2014.
The fashion house specializes in shoes, handbags, accessories and fragrances and hopefully not only will this new deal help Michael Kors increase their revenue, but hopefully it’ll give both brands a new audience.