American fashion brand Michael Kors has officially acquired luxury shoemaker Jimmy Choo in a US$1.2 billion deal.
Michael Kors has acquired Jimmy Choo to find new sources of growth, especially in the luxury shoe market.
Jimmy Choo, which has celebrity fans such as Beyoncé, Lady Gaga, and Emma Stone, is said to be “the ideal partner” for Kors.
According to BBC, the acquisition will deliver a number of benefits to both brands. They include the opportunity to increase sales and having a “more balanced portfolio with greater product diversification”.
“Jimmy Choo is poised for meaningful growth,” said Michael Kors’ CEO Jon Idol in a statement. “And we are committed to supporting the strong brand equity that Jimmy Choo has built.”
The Kors brand has been struggling as of late, with declining sales and the closure of as many as 125 standalone stores.
Attempts to attract customers through massive discounts also backfired as people became more interested in markdowns rather than paying full-price for items.
Will the acquisition of Jimmy Choo improve MK’s standing in the fashion world? Let us know your thoughts in the comments below.