Jimmy Choo’s Luxembourg-based parent company, JAB Holding Co., is reportedly putting the luxury footwear giant up for sale along with suede-driving shoe brand Bally International AG, to focus on its food and beverage sectors, according to a Bloomberg report.
JAB told Bloomberg that the decision to sell off Jimmy Choo, six years after the company acquired the luxury footwear brand, was a strategic decision to focus efforts on consumer goods, coming shortly after the company announced its acquisition of Panera Bread earlier this month.
“We consider disposals of JAB’s luxury business make sense as they do not offer the same cost synergy advantages as the company’s other businesses in the fast-moving consumer goods sector,” Jeanine Arnold, senior analyst at Moody’s, told Bloomberg.
Jimmy Choo saw an increase in revenue of 14.5%, to 364 million pounds, around $495 million, last year, leaving the company poised for a successful 2017.
The luxury footwear retailer expects the sale to be complete by the end of this summer, according to Bloomberg, while the Bally review should take place later this year. JAB did not mention the future of its other luxury clothing brand within its portfolio, Belstaff.
While Jimmy Choo said the brand has not been approached by buyers yet, speculation as to who will snatch up Jimmy Choo and Bally focus on brands like Michael Kors Holdings, LVMH, Coach and Li & Fung Ltd.