Alteri Investors, the former Missguided owner, is exploring the acquisition of luxury footwear brand Kurt Geiger, currently valued at £400m.
- Discussions involve various interested parties and are not exclusive, with Bank of America overseeing the auction process.
- Kurt Geiger, experiencing record earnings amid a luxury market slow-down, captured £40m in profits up to February, as ‘affordable luxury’ gains popularity.
- The brand’s owner, Cinven, has enlisted Bank of America for the auction, reflecting the industry’s interest from buyout firms and luxury groups.
- Kurt Geiger’s strong performance contrasts with competitors like Burberry, facing sales challenges and demotion from the FTSE 100.
Alteri Investors, which previously owned Missguided, is currently in talks concerning the potential acquisition of luxury footwear brand Kurt Geiger. The discussions, as reported by Sky News, are at an initial stage and open to multiple parties, indicating a competitive interest in the retailer.
Kurt Geiger has been under the ownership of private equity firm Cinven since 2015. With a reported asking price of around £400 million, Cinven has engaged Bank of America to manage an auction of the company. This move signals a significant opportunity for buyout firms and luxury brands who are reportedly evaluating their offers.
Despite a general downturn in the luxury market, Kurt Geiger has performed exceptionally well, with profits reaching £40 million for the year up to February. This success is attributed to the growing consumer interest in ‘affordable luxury’.
The strong financial results of the brand contrast with those of its high-end rivals. Notably, Burberry has faced declining sales, resulting in its recent removal from the FTSE 100 index.
Attempts to gain comments from Alteri Investors and Cinven on the ongoing negotiations have been declined. Nevertheless, the interest in Kurt Geiger underscores the aspirational quality and resilience of the brand in challenging market conditions.
Kurt Geiger’s market resilience and profitability attract significant industry interest amid broader luxury market challenges.
