This news is BIG. According to Vogue and The Guardian, US label Michael Kors have won the bidding war to buy British shoe and bag designer Jimmy Choo for £896million. Valued at 230p per share, the board of directors accepted the deal as “fair and reasonable”, citing the agreement as “final” following a three-month auction.
Back in 2014, Fashion Plus Magazine had the opportunity to meet Jimmy Choo himself when he explained he was no longer heavily involved in the running of the brand. However despite the financial change, Pierre Denis is expected to continue in his role of CEO which he has held since 2012; as will Creative Director Sandra Choi. It is estimated Denis will profit £6.2million from the deal based on his stake in the business.
Michael Kors Chief Executive John Idol said of the deal: “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.”
This move will no doubt send shockwaves through the fashion industry; Jimmy Choo has been known for its high quality aspirational footwear – a contrast to the high-street, teenage girl appeal Michael Kors has been attempting to shake for several seasons.