As sales figures continue to dwindle, it seems that American handbag and accessories maker Michael Kors (NYSE:$KORS) is seeking to expand its revenue potential through the acquisition of British shoemaker brand Jimmy Choo (LON:$CHOO).
In a US$1.2 billion (896,000 Pound) deal, American handbag and accessories maker Michael Kors has agreed to acquire Jimmy Choo at a premium of 36.5%.
As a well-known shoemaker, Jimmy Choo started his brand in the 1990s in east London. Since the company’s inception, Jimmy Choo’s handmade shoes have attracted celebrity fans such as Princess Diana, and “Sex and the City” star Sarah Jessica Parker. Known primarily for its stiletto heels and accessories, Jimmy Choo sells in highly fashion conscious cities such as London, Paris, New York, and Tokyo.
As mentioned earlier, Michael Kors, once a prominent brand in the world of fashion, has found its same-store sales decline as fewer consumers visit its stores.
To combat this, the company has expanded its product offerings and outreach in addition to the announced acquisition. In its search for new revenue streams, Michael Kors has added dresses, and menswear into their product lines, while also continuing their e-commerce expansion efforts.
Michael Kors also noted that there would be no management restructuring within Jimmy Choo, and that the company would continue its operations as is.
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