Luxury shoemaker Jimmy Choo has announced it will be putting itself up for sale, causing shares in the company to soar by more than 8%.
The company’s majority shareholder, JAB Luxury, is planning to move out of the fashion industry and focus on its food and drink businesses including Krispy Kreme Doughnuts, Panera Bread, Caribou Coffee, Peet’s Coffee, and Jacobs Douwe Egberts.
JAB acquired its 67% share in Jimmy Choo in 2011 for around £500 million. Shares have increased 35% over the last year and last month the company reported a 16% increase in core earnings to £59 million.
JAB has said it also intends to sell luxury shoe and bag label Bally.
Jimmy Choo was founded in 1996 by shoe designer Jimmy Choo and former Vogue accessories editor Tamara Mellon. The company has passed through a number of different owners since 2001.
No group has yet put in an offer the company but it is thought that the sale may attract the interest of foreign buyers due to the increased demand for luxury British brands in the Middle East and Asia. Analysts have estimated the current value of Jimmy Choo at around £1 billion.