On the 24th April 2017, it was reported that luxury footwear brand Jimmy Choo has put itself up for sale, and is seeking potential offers for the sale of the business.
Jimmy Choo has a market value of approximately £700 billion, and is known to be a particular favourite choice of shoe by the biggest names to grace the red carpet, including Oscar winning actress Emma Stone, globally acclaimed singer Beyoncé and the Duchess of Cambridge herself, Kate Middleton.
The announcement received backing from JAB Holdings Ltd, Jimmy Choo’s main shareholder, who is also an investor in Krispy Kreme Donuts and luxury firm, Coty. In a statement released by Jimmy Choo, the British brand cited, “The board of Jimmy Choo announces today that it has decided to conduct a review of the various strategic options open to the company to maximise value for its shareholders and it is seeking offers for the company. Jimmy Choo has discussed the strategic review process with its majority shareholder, JAB Luxury GmbH, and JAB Luxury has confirmed that it is supportive of the process.”
JAB Luxury, who own 68% of Jimmy Choo, claimed that there was no certainty a sale would take place. Analysts at HSBC noted last month that sales growth had gradually declined in recent years – in 2014, it stood at 12%, which then fell to 7% the following year. In 2016, Jimmy Choo’s sales growth stood at just 2%.
The luxury British brand has 150 stores all over the world, and was listed on the UK stock market in 2014. When the news of the brand being put up for sale broke, shares rose by 8%. Throughout the year, the brand have gained approximately 30% – this has been assisted by the pound becoming weaker and improved sales of Jimmy Choo products in Asia.
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