Creating an uproar in the market, luxury fashion brand Michael Kors today said it has agreed to acquire upscale shoemaker Jimmy Choo for £896 million ($1.17 billion).
But, what might blow your mind is the fact that its going to be an all-cash deal! Yes, you read that right. The company has agreed to acquire Jimmy Choo by paying the whooping amount in cash.
The British brand, said to have been a favorite of Princess Diana, sells pumps and boots for as much as 2.5 lakh rupees. Like its rivals, the company has struggled to entice American shoppers to pay full price for its luxury handbags amid fierce price competition and an environment of heavy discounting that has pressured profits. Sales of handbags are lagging as women have traded down to smaller, less-expensive purses.
Michael Kors has said it expects to open new Jimmy Choo retail stores and develop the brand’s online presence.
In a statement, Michael Kors described itself as “the ideal partner for Jimmy Choo,” saying it would “support the growth of Jimmy Choo through retail store openings and further development of its online presence as well as through an expanded assortment of additional fashion product offerings.”