Luxury shoe maker Jimmy Choo PLC (LON:CHOO) is seeking potential offers for the company as it launches a strategic review to maximise value for its shareholders.
In a statement today, the firm said it has discussed the strategic review move with its majority shareholder, JAB Luxury - which is also an investor in Krispy Kreme donuts and luxury firm Coty.- and the 67.66% shareholder has confirmed that it is “supportive of the process”.
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The company added that it is “not in receipt of any approaches at the time of this announcement” and said “parties with a potential interest in making a proposal should contact BofA Merrill Lynch or Citi”.
Jimmy Choo, which produces a range of luxury goods, has seen sales slow in recent years, with growth of just 2% in 2016, compared to 7% in 2015, and 12% in 2014, according to analysts at HSBC, which recently downgraded its rating for the stock to ‘hold’ from ‘buy’.
READ: Jimmy Choo struts lower as HSBC cuts rating
The company, which has more than 150 stores worldwide, listed on the UK stock market in 2014 and has a current market value of £656mln.
Independent retail analyst Nick Bubb pointed out: “ This seems a bit out of the blue, but, truth be told, the shares have not been a licence to print money since the IPO in Oct 2014, with the shares at 172p not that much ahead of the IPO price of 140p.”
In early trading, Jimmy Choo shares jumped 6.5p, or 11p higher to 179.5p.
-- Adds analyst comment, share price --