Michael Kors is buying Jimmy Choo for approximately $1.2 billion. This was announced by Michael Kors Holdings on Tuesday, 25th July, 2017.
Due to the decline in sales within the last couple of years, Jimmy Choo was put up for sale in April. The Reimann family who owned Jimmy Choo were approached by different companies before they eventually sold to Michael Kors. Michael Kors handbag and accessories business has been experiencing a decline in sales and the purchase of Jimmy Choo seem to be the best way to push the company to find sources of growth in an increasingly competitive retail market.
The acquisition will give Michael Kors a new avenue for worldwide growth and a firm grip in the luxury shoe market as the handbag market slows. CEO Pierre Denis, who has held the top job since 2012, will continue to run Jimmy Choo.