Jimmy Choo is seeking offers for the company as part of a review of its strategic options to maximize shareholder value. The British brand, which specializes in footwear and accessories, said it had discussed the strategic review process with its majority shareholder, JAB Luxury, which has confirmed it is supportive of the process.
JAB Luxury holds 67.7 percent of Jimmy Choo, which trades from over 150 stores globally.
Per Reuters, “Jimmy Choo said Britain's Takeover Panel has agreed that any talks 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.
Jimmy Choo said it is currently not in receipt of any approaches.
The sale follows years of strife between the label’s co-founder Choo, himself, and designer Tamara Mellon, who joined to launch the label in 1996. Mellon, who departed from Choo in 2012 with an estimated $135 million after a strained relationship with partner Jimmy Choo, is alleging that her former company is using underhanded business tactics to spike her new eponymous label’s success.
Mellon founded the shoe brand in the mid-1990s with its namesake before leaving in 2011. In a suit, which she filed in September 2016 in New York state court, Mellon claims Jimmy Choo sought to punish her when it learned she was about to start a new brand and publish a memoir.
According to Mellon's complaint, an array of shoemakers refused to do business with her by way of her new company as a result of Choo allegedly blocking her from working with luxury shoemakers in Florence, Italy. Jimmy Choo’s pressure on suppliers has been “extremely serious” for Mellon, and as a result, the company was unable to secure production from the suppliers, and a number of Mellon’s pre-existing relationships have been terminated by those suppliers, according to the complaint. Mellon further claims that the boycott caused Tamara Mellon Brand LLC to file for bankruptcy in December 2015, costing her millions of dollars.
Moreover, Mellon asserted that while she was contractually barred from competing with Jimmy Choo for a year after leaving, once that period expired she faced no other restrictions. Senior management did not discourage her when she told them she planned to start her own brand after the non-competition period ended, she said.