Luxury fashion brand Jimmy Choo (LON:CHOO) has announced plans to put itself up for sale in a “strategic review of the company”.
The company said in a statement that “it has decided to conduct a review of the various strategic options open to the Company to maximise value for its shareholders and it is seeking offers for the Company.
“The Takeover Panel has agreed that any discussions with third parties may be conducted within the context of a “formal sale process” to enable conversations with parties interested in making a proposal to take place on a confidential basis. The Company is not in receipt of any approaches at the time of this announcement.
“The Board of Jimmy Choo reserves the right to alter or terminate the process at any time and in such cases will make an announcement as appropriate. The Board of Jimmy Choo also reserves the right to reject any approach or terminate discussions with any interested party at any time.”
JAB, a private company that owns 70 percent of shares in the luxury brand, “has confirmed that it is supportive of the [sale] process”.
Jimmy Choo has invited any interest from buyers to make themselves known to Bank of America Merrill Lynch (INDEXNYSEGIS:VXA0R) or Citi (NYSE:C).
Shares in the company, which has more than 150 stores worldwide, have gained more than 20 percent this year. It has a market value of £670 million.
Jimmy Choo produces a range of luxury goods that has regularly seen support from high profile celebrities on the red carpet but has seen sales slow in recent years
Jimmy Choo’s sales growth was at 2 percent in 2016, which was compared to the 7 percent in 2015 and 12 percent in 2014, HSBC analysts noted.
The company was on the stock exchange in October 2014 at 140p a share. The stock is now around 20 percent higher, at 168p.