Michael Kors to buy upscale shoe brand Jimmy Choo for $1.2 billion

Jimmy Choos on the red carpet — (Image credit: Clemens Bilan/Getty Images for GQ)

On Tuesday, fashion brand Michael Kors said it has agreed to buy upscale shoemaker Jimmy Choo for $1.17 billion in cash, in a bid to shore up its narrowing profits amid slow growth in its core handbag business. Jimmy Choo has been up for sale since April, when European firm JAB Holding put it on the market. Michael Kors and other fashion brands are trying to come up with strategies to get U.S. consumers to pay full price for luxury handbags, as customers become accustomed to steep discounts and women are switching to smaller purses. In May, when Michael Kors unveiled a turnaround plan, rival Coach agreed to buy Kate Spade for $2.4 billion. The Michael Kors-Jimmy Choo deal requires shareholder approval.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.