Edited by Lester Brathwaite on
Tommy Hilfiger is rumored to be one of the private investors in Michael Kors, who is looking to raise as much as $500 million to fund his eponymous brand’s global expansion.
Hilfiger would join Joel Horowtiz, Silas Chou and Lawrence Stroll in the venture; the fab four were the original investors in the Tommy Hilfiger brand, while Chou and Stroll bought Michael Kors in 2003 for a reported $100 million.
Hilfiger remained coy about his involvement, saying that ”Anybody would be crazy not to invest in it. Michael Kors is the next major global player in my eyes.”
He did, however, express great confidence in his partners: ”For over 20 years, we’ve invested in things together. If they ask me, of course I’ll invest.”
Kors is planning on an initial public offering ASAP with some sources estimating the value of the company at $2 billion. While Prada is the latest clothes horse to trot out an IPO, Kors will be the first American designer in a while to do so.
Ralph Lauren and Donna Karan completed their IPOs in the late nineties, but very few brands are in as an advantageous position as Kors to lure investors with an established business that still has room to grow.
And grow it shall with Michael Kors planning on adding 50 retail locations in Greater China over the next three years, as well as a new flagship store on Fifth Ave. [WWD]