Michael Kors is buying ALL the Jimmy Choo shoes
Which seems about right, they are incredible shoes after all. This power move makes Michael Kors basically the leader of the free fashion world - just think of all the swag with his name on it: handbags, apparel, sunglasses, fragrance, watches, jewellery, cosmetics, an open invitation back to TV's Project Runway, and now he owns all of Jimmy's shoes as well.
According to The New York Times, Michael Kors Holdings announced the $1.2 billion USD acquisition of Jimmy Choo on Tuesday with John D. Idol, chairman and chief executive of Michael Kors saying, "Acquiring Jimmy Choo is the beginning of a strategy that we have for building a luxury group that really is focused on international fashion brands."
Growing an already large luxury brand through acquiring smaller brands seems to be the growth strategy du jour with global powerhouse companies like LVMH and Estee Lauder Group getting more market share not through new product launches but by acquiring other niche brands. In line with this strategy, luxe accessories label Coach recently announced the purchase of New York brand, Kate Spade for $2.4 billion USD.
Jimmy Choo shoes are among the most coveted luxury footwear on the planet and are a firm red carpet celebrity favourite. The luxe shoe category is a new market for Michael Kors, which embodies a luxury aspirational lifestyle aesthetic but price their products at the reasonable end of the scale.
Jimmy Choo started back in the early '90s when shoemaker Jimmy Choo began producing bespoke shoes for an elite list of clientele including Princess Diana. But like any good fashion tale the path of Jimmy Choo to cult brand status was not without controversy. The luxe label was co-founded in 1996 by Tamara Mellon, a British Vogue accessories editor at the time and cobbler Jimmy Choo. Mellon left the company in 2011 after a number of very public and high profile spats with investors, wrote a tell-all book, In My Shoes: A Memoir about it soon after and a few years later sued Jimmy Choo Ltd alleging they caused her new namesake footwear brand to fail.
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