UK Immigration news you need to know about the UK economy: Driven by the IPO boom in European and American stock markets, another heavyweight luxury company is gearing up to plan an IPO. This is the famous British luxury women's footwear brand, Jimmy Choo.
In May 2011, the Swiss-based luxury holding company Labelux acquired Jimmy Choo at a valuation of 525 million pounds (approximately 860 million US dollars at the exchange rate at that time). The sellers were the private equity firm Towerbrook (85%) and the brand's co-founder and Chief Creative Officer, Tamara Mellon (15%).
Over the past three years, a series of European luxury companies have raised funds to accelerate their global expansion. They have either gone public (Prada, Ferragamo, etc.), been acquired by luxury groups such as LVMH and Kering (Bulgari, Brioni, Loro Piana, etc.), or brought in external investors (Versace, etc.). In particular, the market enthusiasm for Moncler's IPO at the end of last year made Labelux realize that it must take advantage of the capital market's continued favor for large luxury stocks to raise sufficient capital as soon as possible to accelerate its development.
According to the Financial Times, citing insiders, Jimmy Choo may list in London, though private equity financing is not ruled out. The latest valuation could reach 1 billion pounds (approximately 1.7 billion US dollars at the current exchange rate). Regardless of the choice, Labelux will continue to maintain a controlling stake. (Labelux's portfolio also includes the Swiss luxury brand Bally and the Italian brand Belstaff, among others.)
Since the change in ownership, Jimmy Choo's WorldWay has grown by 30%, but compared to other more high-profile brands, it remains relatively tepid.
Under the leadership of current Creative Director Sandra Choi, the Jimmy Choo brand has expanded into menswear, accessories, and fragrances. Keeping up with the times, Jimmy Choo, famous for its high heels, launched a sub-brand last month called Choo.08°, featuring low-heeled or flat athletic leisure shoes for active women. This September, it will also collaborate with Inter Parfums to launch its first men's fragrance.
The UK IPO market has been quite hot recently, reaching its highest peak since before the financial crisis. Just last week, shares of the British online fashion retailer Boohoo soared 50% on their first day of trading, bringing the company's market value to 870 million pounds.
