Michael Kors, on Tuesday, announced that it is buying luxury shoemaker Jimmy Choo for $1.2 billion, Wall Street Journal reports.
The luxury handbag maker, experiencing a shortfall of profits lately, is hoping the deal can turn things around and give them a bigger foothold in the luxury shoe business.
While the market for luxury shoe has been growing steadily, sale of luxury handbags has slowed down.
The luxury shoe brand was founded in 1996 by Tamara Mellon, who was the accessories editor at British Vogue, with Malaysian cobbler Jimmy Choo.
Michael Kors has said the luxury shoe brand will continue with its current management team, including the chief executive, Pierre Denis, and Sandra Choi.
The company said that they will open new Jimmy Choo retail stores and develop its online presence.
Photo Credit: jimmychoo.com