Kors blimey! Choo shoe empire sells for £896m
ITS well-heeled celebrity clients can pay thousands of pounds for a pair of shoes.
But British luxury brand Jimmy Choo yesterday announced its biggest sale – an eye-watering £896million for the company.
US fashion brand Michael Kors snapped up the designer label, saying it was the “ideal partner”.
For two decades Jimmy Choos have been red carpet favourites, adorning the feet of major celebrities and royals alike.
Fans of the shoes, which sell for £400-£500 a pair on average, include Beyonce, the late Diana Princess of Wales, Jennifer Lopez and the Duchess of Cambridge.
The company was founded in London in 1996 by its namesake designer alongside former Vogue accessories editor Tamara Mellon. The products boast a “sexy cut, fashionable design, and exceptional Italian craftsmanship”, according to the official website, which also proudly pictures famous feet wearing the shoes.
Bags and accessories feature among the company’s offerings, catering for men and women, but it is undoubtedly best known for skyscraper heels.
Opportunities
The firm was put up for sale as part of a “strategic review” in April. Under the new deal, the shoe firm will continue to operate under its existing management team, including chief executive Pierre Denis. Jimmy Choo shareholders will receive 230p in cash for each share, a premium of 36.5per cent on the firm’s share price of 168.5p on April 21. John Idol, chairman and chief executive of Michael Kors, said: “We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.” In March, record revenues and profits were thanks to a boost from the Brexit-hit pound and strong sales across Asia. Annual revenues climbed 15 per cent to £364million in the year to the end of December, while earnings rose 16 per cent to £59million over the period. Chairman Peter Harf said: “A combination with Michael Kors will allow Jimmy Choo to embark on its next phase of growth and provide opportunities for the benefit of Jimmy Choo customers, employees, shareholders and other stakeholders.”