We’re guessing Michael Kors is not “underwhelmed” by the latest business venture he’s involved in. The New York-based designer (and beloved judge on Project Runway) has sold a minority stake to a group of investors in a deal that values the brand $2.5 billion. That’s billion. With a ‘b’.
According to the New York Post, investors have been clamoring to get a piece of the MK pie since the end of June, a company that’s been privately owned up until now. Kors had hired Morgan Stanley last spring to raise $500 million in growth capital, which would be used toward an increased international presence.
Among the investors who threw their hats in the ring for preferred convertible shares in Michael Kors were fashion designer and billionaire Tommy Hilfiger , as well as sovereign wealth funds, a source said. “This is luxury’s day,” said Richard Kestenbaum of New York investment bank Triangle Capital, noting the recent spike of sales in the luxury market.
And Kors is at the top of it all. The Michael Kors brand has more than doubled in size during the past four years and is making consistent profits despite the costly expansion of its retail chain, which this spring added a 7,000-square-foot Paris boutique on Rue St. Honore. With more than 100 stores worldwide, Kors plans to double that figure in 2012.
But as long as he continues to sit on the Project Runway judging panel and call the designers “costumey”, we don’t mind how big he gets!
Article Source: New York Post
Photo Source: feelny.net
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