Kurt Geiger sold for £215m…

June 3, 2011

The Retail Inspector – High-Street-1

Europe’s largest luxury shoe retailer has been sold to US fashion firm Jones Group for £215m

Jones Group, a New York based retailer, which owns other fashion brands such as Nine West, bought the Kurt Geiger brand from Graphite Capital, a London-based private equity firm.

Kurt Geiger was originally bought by Graphite for £95m back in 2008, the high-end shoe retailer was established in 1968 and is now a global brand operating from more than 200 locations worldwide, including 49 individual stores and 156 concessions in department stores such as Harrods.

Neil Clifford, the current chief executive of Kurt Geiger will keep his job despite the sale to US owners, he had this to say: “Kurt Geiger is still relatively young in terms of growth profile, with great potential still to be fulfilled”

“We have developed a strong relationship with Jones and recognise it as an established designer, retailer and wholesaler in the US”

“Jones has a clear track record of supporting and growing its brands, and we are confident that we have found the right strategic partner to help evolve our business.”

The purchase of Kurt Geiger by Jones will position the group as one of the globe’s strongest fashion footwear retailer, with Kurt Geiger being it’s primal European hub.

Wesley Card, Jones chief executive, commented on the acquisition of the established brand stating that: “The addition of Kurt Geiger to Jones is consistent with our strategy of identifying companies with best-in-class talent and proven brands that have the potential for substantial growth.”

Kurt Geiger isn’t the first big retailer to cross the waters, nor will it be the last, the question remains – is it always a good move? We’ve recently seen the struggles Kraft have had with their acquisition of Cadbury’s, but at the same time, many retailers have flourished as a result of US marketing.

Jimmy Choo, another luxurious shoe designer have also recently been bought out, this time by Labelux – more evidence of buyers looking to tap into fast-growing consumer markets in Asia.


In other news…

Whether you have any interest in football or not, you will have most certainly heard of the recent Fifa affairs – allegations of fraud, corruption and bribery passed round the board like a parcel at a kids party.

It’s got to the point now where corporate sponsors are stepping in, with McDonald’s joining Coca-Cola, Visa, Adidas and Emirates in expressing concern following the emergence of such corruption allegations.

The sponsors of Fifa have expressed their concerns, claiming that the organisation needs to change in order to save football.

McDonald’s have stated that: “We continue to encourage FIFA and its leadership to reform and strengthen the game of football around the world and expect the current issues to be resolved in the best interest of the game.”

The fast-food chain and sponsors of the 2014 Fifa World Cup in Brazil concluded by saying: “We remained committed in our support of grass roots and international football globally and to a successful 2014 World Cup in Brazil.”

Business, corruption and sport…oh well it’s the weekend soon 🙂 Have a good one all 🙂