Jimmy Choo Seeks Potential Offers to Sell Its Business
Jimmy Choo has announced it is seeking potential offers for a sale of the business.
The luxury shoe maker, which has a market value of about $900 million, has not received any bids yet and is also weighing other options.
As well as shoes, Jimmy Choo produces a range of luxury goods, but has seen sales slow in recent years.
The company’s recent move received backing from Jimmy Choo’s main shareholder JAB Holdings, which is also an investor in Krispy Kreme donuts and Coty.
Jimmy Choo’s shoes are often seen on the red carpet worn by celebrities such as Jennifer Lopez and Beyonce.
Kate Middleton is also a fan of the British shoe designer, as is Emma Stone.
The company said in a statement: “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 maximize 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, which owns 68% of Jimmy Choo, said there was “no certainty that a sale” would take place.
Jimmy Choo’s sales growth was 2% in 2016 compared with 7% in 2015 and 12% in 2014, analysts at HSBC noted last month.
The company’s shares rose 8% on news of the possible sale.
Jimmy Choo’s shares have now gained about 30% this year, helped by a boost from the weaker pound and improved sales in Asia.