Alteri Investors, former owner of Missguided, is considering acquiring luxury footwear brand Kurt Geiger.
- The acquisition discussions are reportedly in the early stages and are non-exclusive.
- Bank of America is conducting an auction with an estimated asking price of £400 million.
- Kurt Geiger experienced record profits despite a market slowdown in luxury goods.
- The company’s success comes as other luxury brands face declining sales.
Alteri Investors, known for its previous ownership of Missguided, has engaged in talks regarding a possible acquisition of the esteemed luxury footwear brand Kurt Geiger. These negotiations are understood to be preliminary, with no exclusivity involved, indicating that several parties are investigating potential bids for the retailer.
Bank of America has been appointed to oversee the auction process for Kurt Geiger, with a reported valuation around £400 million. This strategic move follows the brand’s private equity ownership by Cinven since 2015, signalling a pivotal transition phase for the company as various buyout firms and luxury goods groups express interest.
Kurt Geiger has defied the prevailing market challenges faced by the luxury sector, posting record profits in its latest annual report. Profits reached £40 million for the fiscal year ending February, suggesting a robust demand for its offerings characterised as ‘affordable luxury.’ This performance stands out, particularly as high-end competitors like Burberry experience diminishing sales, resulting in its recent exclusion from the FTSE 100 index.
The wide interest in acquiring Kurt Geiger is fuelled by its noteworthy financial results and resilient market presence. Despite a general downturn in the luxury market, the brand has captivated consumers seeking high-quality products at accessible prices. This shifting consumer preference towards affordability within the luxury segment underscores the strategic value of Kurt Geiger in any potential acquisition.
The outcome of these acquisition talks remains to be seen, but Kurt Geiger’s impressive financial performance ensures it is an attractive prospect in the luxury footwear market.
