Rumors have been circulating about potential bidders for the sale of the luxury brand label Jimmy Choo Ltd. The man behind the fashion label, however is out of the running.
According to Elle UK (and the Financial Times),when the private equity group behind the luxury label, TowerBrook Capital, announced that it was exploring the idea of a sale, Jimmy Choo (the designer) declared his interest. But, it seems that TowerBrook have invited only three investors to advance to a second round of bidding, kicking Choo to the curb.
LVMH has been mentioned as a potential buyer, but the latest news comes from Reuters, on Tuesday April 19, 2011. Reuters reports that according to the Dow Jones report, Bahrain-based Investcorp INVB.BH and German luxury company Labelux Group have made a joint offer for Jimmy Choo, and U.S. private equity firm TPG is also in the process.
Chief Executive for Jones Group, Wesley Card, told Reuters in February that his company was looking to buy brands that would help extend Jones’ reach, particularly into overseas markets. In 2010, Jones bought high-end shoemaker Stuart Weitzman. ”Acquisitions are an important part of our growth strategy,” Card said.
TowerBrook expects to sell Jimmy Choo for £400 to 500 million, which is double the company’s value since it was acquired four years ago for £180 million, Elle reports. Accordingly, Jimmy Choo himself hasn’t had a hand in the company since he sold his stake for £10 million, back in 2001.
But, that didn’t stop him from making a bid. He retained investment advisors to explore the prospect of an acquisition, and even attracted the support of the Malaysian government and other Asian investors for a shot at the company.