Jimmy Choo is changing hands, again, and this time it will be acquired by the British luxury fashion brand Michael Kors. So MK will now pick up some of those gorgeous shoes with their bags, but this merger comes with a massive price deal, of course.
Girls’ best friend might be diamonds, but Jimmy Choo shoes are every girl’s dream – not even exaggerating. The luxury shoe brand Jimmy Choo will soon be owned by British brand Michael Kors, yes! Now Choo and Kors may seem to be a weird combination because Jimmy Choo sells its Molly crushed velvet high heel sandals for $875; Michael Kors sells its Annaliese leather platform sandals for $140. But it is for the best for both companies – Jimmy Choo on one hand needs a company which will let it work independently, without tampering and changes to its luxurious fashion and quality sense. Oh the other hand, Kors is planning to expand from $470 million to $1 billion this year, and what can be better than a very high-profile shoe brand!
On Tuesday, Michael Kors Holdings announced that it has agreed to buy Jimmy Choo for 896 million pounds, or about $1.2 billion, the latest push by an American high-end fashion house to find new sources of growth and what its chief executive characterized as the first step in building a bigger international luxury group. This deal is expected to bring Kors back in the game, as it was once the runaway leader of ‘accessible luxury market’ and take itself to a new avenue of growth.
Although as I said earlier, Kors and Choo are both red carpet favourites, but they belong to different segments of population where Kors is more of a fashion-forward, competitive price brand and Jimmy Choo is on the expensive side of the spectrum. How will this 1.2-billion-dollar marriage work? Well, after sale, Jimmy Choo will continue with its current management team, including Pierre Denis – the CEO, and Sandra Choo – Choo’s niece. Which means the working pattern of Choo will not change and there will be no compromise in quality either. But Kors will add more retail stores, expand its fashion offerings and may also develop Choo’s online presence. The same old Choo shoes, but just widely available, that is pretty cool.