US investor steps into Jimmy Choo

A US private equity group tonight said it had bought a majority stake in luxury shoe label Jimmy Choo in a deal valuing the company at £101m (€143.9m).

The European arm of Hicks Muse Tate & Furst said it had acquired the shareholding in the prestigious retailer from Phoenix Equity Partners, although it refused to reveal the size of the stake and the sum paid.

Reports said the shareholding was 51%, although a spokeswoman for Hicks said it had bought shares over and above that.

Jimmy Choo opened its first store in Motcombe Street in London in 1997 and had four outlets with sales of £11m (€15.7m) by 2001. It also began developing a sizeable wholesale business with clients including Harvey Nichols, Saks Fifth Avenue and Bergdorf Goodman.

Since then, the group has extended its range of products from shoes to bags and small leather goods and opened 23 new outlets with annual sales of some £40m (€57m). It plans to have 50 stores within the next four years.

Jimmy Choo chief executive Robert Benoussan said: “The management of Jimmy Choo is delighted with today’s announcement and is totally behind this new partnership.

“We believe we are only beginning to realise the true potential of the business and look forward to continuing success working in partnership with Hicks Muse Europe.”

Lyndon Lea of Hicks Muse Europe said: “Jimmy Choo is a super-iconic brand in the luxury goods market.”