The luxury shoe brand Jimmy Choo officially has a new owner. The American brand Michael Kors is the one behind the purchase. Just yesterday, Michael Kors, the chairman of the company, released the news that they bought the shoe brand for an impressive $1.2 billion.
“Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories. We admire the glamorous style and trendsetting nature of Jimmy Choo designs,” said Michael Kors.
Jimmy Choo was established in 1996 by Tamara Mellon, who is the editor of British Vogue and the designer Jimmy Choo. Their luxury designs became a favorite for many celebrities such as Sarah Jessica Parker, Jennifer Lopez, and Beyoncé. Their popular stilettos and strappy sandals were sold at an average price of $1,000. The shoe company already owns over 150 stores all around the world.
The shoemaking brand was placed on the market earlier this year, in April. The major shareholder JAB announced their intentions to focus their business on the food and beverage industry. They’ve already purchased companies such as Panera, Caribou Coffee, and Krispy Kreme. Each shareholder got 230 pence (about $3) per share during the sale.
According to Michael Kors representatives, the main things at the shoe company are going to stay the same. They are going to strive for improvements only in the area of designs and quality. The current CEO of the shoe company, Pierre Denis, is going to keep the position that he’s had since 2012. He was previously the executive director at LVMH. Also, the creative director Sandra Choi, who is Choo’s niece, is going to continue with her work for the brand. It is estimated that she will earn $2.9 million from the sale, while Denis will earn around $8 million.
“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.”- said John Idol, the chief executive of Michael Kors.
Michael Kors is just another brand that is currently struggling with the declined sales and the huge competition. As a store that sells luxury goods, they are taking large hits from fast-fashion brands and e-retailers. Kors is closing over 100 of its stores, renovating over 100, and it is trying to implement more innovations.