It’s official. Michael Kors is buying Jimmy Choo for a cool US$1.2 billion.
According to Michael Kors Holdings, they plan to help the luxury shoe label diversify and become even more profitable by growing their luxury men’s footwear and breaking into the ‘fast-growing’ Asian market. The move is a strategic one for Kors, whose sales have been declining over recent quarters. The buy-out signals their intention to stay relevant and competitive in today’s market, and follows the precedent set by Coach in May, when the handbag retailer purchased Kate Spade.
The eponymous label was founded in 1996 by Jimmy Choo and Tamara Mellon, a former Vogue journalist, though Choo formally left his company in 2001. In no time at all it became a fast favourite of fashion (and real) royalty, from the late Princess Diana to Beyonce.