Michael Kors to buy Jimmy Choo for $1.2 Billion

Fashion brand Michael Kors will acquire shoemaker Jimmy Choo in a $1.2 billion deal. The acquisition will give Michael Kors a new group of customers, since Jimmy Choo's shoes have a higher price point.

Forbes reports Michael Kors has been losing customers to online retailers and discount and fast-fashion stores like TJMaxx and H&M. In response, the company offered deep discounts, which backfired. According to Forbes, Michael Kors' sales were declining 11% last quarter and the company is in the process of closing 100 to 125 stores. Jimmy Choo, on the other hand, has been growing.

The New York Times reports Michael Kors expects to open new Jimmy Choo retail stores and will expand the shoemaker's online presence.