Michael Kors, an American Fashion retailer famously known for accessible luxury, has recently announced its recent purchase of British Luxury brand Jimmy Choo for $1.2billion.
Jimmy Choo, known for its shoes was co-founded by Malaysian shoemaker Jimmy Choo, who trained at the renowned Cordwainers Technical College in London, and former Vogue journalist Tamara Mellon in 1996.
No longer owned by Jimmy Choo, Michael Kors promises that the recent purchase of the famous shoe brand is expected to deliver a number of benefits, including "the opportunity to grow Jimmy Choo sales to one billion pounds" and "a more balanced portfolio with greater product diversification".
Jimmy Choo Campaign
Although high-end fashion retailers are currently struggling with a not so excited market, due to the introduction of fast fashion brands like Zara and H&M and the instant accessibility e-commerce provides the global market, Michael Kors in May announced that it may close 125 of its stores. The recent purchase may be an attempt to grow the brand.
We believe that Jimmy Choo is poised for meaningful growth in the future," John D Idol, the Michael Kors chairman and chief executive, said in a press release." We are committed to supporting the strong brand equity that Jimmy Cho has built over the last 20 years."
With over 150 stand alone stores, Jimmy Choo will continue to operate under existing management. According to Peter Harf, the Jimmy Choo chairman "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,"
It'll be interesting to see the growth direction for Jimmy Choo and how this affect Michael Kors.
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