Tuesday, 25 April 2017

Jimmy Choo Puts Itself Up For Sale To 'Maximise Shareholder Value'

Jimmy Choo was founded in 1996
The luxury shoe and accessories brand with over 150 stores worldwide may be sold as it evaluates its future, the company says.
Shares in Jimmy Choo have soared to a record high after it put itself up for sale as part of an evaluation of its future.

The British luxury brand, which specialises in shoes and accessories, said it was to conduct a review of various strategic options to "maximise value for its shareholders", including the possibility of a sale.

Image result for jimmy choo up for sale

Jimmy Choo said it was inviting offers for the company, which joined the stock market with a value of £546m in October 2014.

Its market capitalisation stood at almost £656m ahead of the announcement, which sparked a surge of nearly 11% in its share price by the close of trading on Monday.

The brand - made famous as worn by TV character Carrie Bradshaw in the hit US series Sex and the City - was founded by entrepreneur Tamara Mellon and footwear designer Jimmy Choo back in 1996, with both later selling their holdings.
It is currently run by chief executive, Pierre Denis.
The company said on Monday: "Jimmy Choo has discussed the strategic review process with its majority shareholder, JAB Luxury, and JAB Luxury has confirmed that it is supportive of the process."
Private equity firm JAB holds a stake of almost 68% in Jimmy Choo.
The company announced record annual revenues and profits last month, aided by a boost from the Brexit-hit pound and strong sales across Asia.
But Jonathan Buxton, partner and head of consumer at Cavendish Corporate Finance, said challenging conditions for the luxury sector in other key markets were likely behind the decision.
"The announcement comes amid a continuing decrease in top-line growth for the luxury shoe maker, which fell to only 2% in 2016, falling by more than half of the 7% growth the firm achieved in 2015."
He added: "What remains to be seen is whether growing interest from Asia and the Middle East for luxury UK brands, will see Jimmy Choo receiving offers from foreign buyers searching for well-known British brands."

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