Kurt Geiger, a well-known shoe retailer, is currently in discussions about a possible sale to US-based buyers, as reported by sources close to the matter. The company’s current owner, private equity firm Cinven, is rumored to be considering offers exceeding £450 million due to the brand’s growing popularity among both celebrities and everyday consumers.
Among the potential buyers mentioned in these informal talks are well-known American footwear companies such as Steve Madden, Capri Holdings (owner of Michael Kors), and Tapestry (owner of Coach and Stuart Weitzman). While these discussions are still in the early stages, insiders in the financial industry have confirmed the ongoing negotiations.
Cinven’s acquisition of Kurt Geiger in 2014 for £245 million has proven to be a lucrative investment, with the company experiencing a significant increase in value over the past five years. The brand’s high-profile endorsements, such as Meghan, Duchess of Sussex, showcasing their products have undoubtedly contributed to its rising status in the fashion industry.
Recent financial reports from 2017 reveal Kurt Geiger’s impressive sales growth of 12%, surpassing £330 million in revenue. This success can be attributed to the brand’s strategic expansion strategy, which includes over 80 store locations across 20 countries and 240 concessions, with prominent placements in prestigious retailers like Harrods and Selfridges. The company’s diverse product range caters to varying price points, with lines like Carvela and Miss KG offering more affordable options alongside their premium Kurt Geiger collection. Additionally, their handbags division has become a substantial contributor to overall sales, reflecting their commitment to diversifying their product offerings.
Moreover, the interest from American buyers underscores Kurt Geiger’s ambitions to establish a global presence, particularly targeting growth in the US market. CEO Neil Clifford has expressed the brand’s desire to replicate its success internationally, aligning with its established reputation in the UK market. This potential sale could mark an exciting new chapter for Kurt Geiger as it continues to expand its reach and influence in the global fashion landscape.
To know more about Kurt Geiger, visit their official website here.
Read more about potential acquisitions in the fashion industry here.
