Labelux, a German luxury goods company, will purchase Jimmy Choo, Ltd. from TowerBrook Capital for a reported $650-895 million. Under Labelux, the high-end women’s shoe and bag maker will be expanding its line and focus on developing the Asian market, particularly in China. Co-founder Tamara Mellon, of British Vogue fame, will retain her minority share of the company and continue serving as Chief Creative Officer.
- Based on your reading of the article, what dynamic forces make this a good acquisition for Labelux?
- What competitive advantage(s) does Jimmy Choo gain from being acquired by Labelux, which also owns Bally Shoe?
- Describe the level of environmental uncertainty for Jimmy Choo moving forward.
SOURCE: M. Haddon, “Labelux Buys Jimmy Choo,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052702304066504576339423661349398.html)