Fashion heavyweight Michael Kors has decided to sell 25 percent stake in his company in order to fund his plan for global expansion, with a goal of raising upwards of $500 million. Long-time fashion designer Tommy Hilfiger has reportedly been recruited by Morgan Stanley to become one of the top investors. Although nothing has been finalized, Hilfiger commented to WWD from Europe:
“Anybody would be crazy not to invest in it. Michael Kors is the next major global player in my eyes.”
To date, the Michael Kors business is very successful. What’s next? 50 locations across China in the coming years, and plans to go for an IPO soon after the private sale, following in the trails of Prada. Ralph Lauren and Donna Karan completed their IPOs in the late nineties, but for American brands, this is rare.
If the investment in Kors fashion conglomerate finalizes, Hilfiger would join Joel Horowtiz, Silas Chou and Lawrence Stroll in the deal. These four were also responsible for the original investment in the Tommy Hilfiger brand. in 2003, Chou and Stroll bought Michael Kors for a reported $100 million.
Hilfiger seems confident in his partners. He said, ”For over 20 years, we’ve invested in things together. If they ask me, of course I’ll invest.”