Jones buys Kurt Geiger for GBP215m

UPDATE: Jones buys Kurt Geiger for GBP215m

By Joe Ayling | 2 June 2011

US fashion company The Jones Group has bought a majority stake in UK footwear retailer Kurt Geiger for GBP215m (US$352m) it has been confirmed to just-style.

The purchase from private equity group Graphite Capital was first reported by just-style this morning (2 June), and ties up a brand distribution deal with the Jones-owned Nine West.

“Kurt Geiger has grown exceptionally strongly under Graphite’s ownership via the expansion of the core business and the company's commitment to increasing its global presence," said Neil Clifford, Kurt Geiger chief executive.

"With its strong knowledge of the retail industry, Graphite has been an excellent partner and helped us exceed our original business plan.”

Graphite backed the GBP95m management buy-out of Kurt Geiger in February 2008. It said that despite the challenging economic conditions in the retail industry during Graphite’s ownership, annual turnover increased by over 70% to GBP205m at April 2011.

Since the management buy-out, Kurt Geiger has opened 24 stand-alone stores in the UK, including a new flagship concept store in Covent Garden. It has also signed an exclusive UK distribution agreement with Nine West, one of The Jones Group’s own leading brands.

Overseas, the company has opened stores in Dubai, Kuwait, Qatar and Bahrain and signed agreements with franchise partners in Russia and Turkey, opening its first stores in Moscow and Istanbul in the past few months.

Sectors: Apparel