Retail

Michael Kors Snaps Up Jimmy Choo in $1.2B Deal

Just two years after Jimmy Choo burst onto the scene in 1996, Sarah Jessica Parker made it a household name through her “Sex and the City“ character, Carrie Bradshaw.

“With no man in sight, I decided to rescue my ankles from a life of boredom by purchasing too many pairs of Jimmy Choo shoes.” – Bradshaw

Now, the shoe brand has been plucked out of its no-longer obscurity by fashion brand Michael Kors. In a $1.2-billion deal announced Tuesday, Michael Kors is acquiring Jimmy Choo.

To help grow its luxury retail brand, this move for Michael Kors is said to help it expand into new fashion territories. Also, this move may in turn help the brand turn its sales around. In May, Michael Kors’ sales forecast for the remainder of 2017 was downgraded and the brand said it would be closing 125 of its brick-and-mortar stores.

As Michael Kors is shutting down its own stores, the brand is looking to open up Jimmy Choo-branded retail stores and beef up its online presence. Once the deal is complete, Jimmy Choo will remain under its current management team, which includes CEO Pierre Denis.

Michael Kors Chairman and CEO John D. Idol commented on the deal in the company’s news release.

“We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury brand,” Idol said. “Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear. The company is a leader in setting fashion trends. Its innovative designs and exceptional craftsmanship resonate with trendsetters globally. 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.”

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