Last week there were reports that LVMH was trying to sell Donna Karan and DKNY to a buyer in the United States because of declining sales. Now, New York clothing company G-III Apparel Group has announced that they have purchased Donna Karan International.
According to an article on Fashionista, New York clothing company G-III Apparel Group announced Monday that they have purchased Donna Karan International, parent company of DKNY, from LVMH for $650 Million.
Louis Vuitton Moët Hennessy, or LVMH, doesn’t sell fashion brands very often. They’ve only ever sold Christian Lacroix, Ebel watches, and a minority stake in Hermès.
Donna Karan, however, has costed the company quite a bit of money with DKNY Jeans and DKNY C being discontinued in April after having costed the company about $200 million in revenue. So, it’s not much of a surprise that LVMH would want to sell the brand.
Toni Belloni, group managing director of LVMH released a statement in which he says,
“We believe the DKNY brand has a dynamic position in the market, and when G-III approached us about acquiring the brand, we concluded that the time was right and that G-III was the right steward going forward. We are grateful to CEO Caroline Brown, Creative Directors Maxwell Osborne and Dao-Yi Chow, and the entire management and design teams for the strategic actions that created a platform to support DKNY’s continued growth.”
G-III Apparel Group owns brands like Vilebrequin and Andrew Marc and makes clothing for Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, and more.
The company has sold $75 million in stocks to LVMH with a seller not, or deferred payment plan, of 6 1/2 years and has been financed by Barclays and JPMorgan Chase Bank to fund the purchase.
G-III Apparel Group also expects Donna Karan International to make the company more valuable in a couple of years.
So, what do you think? Will Donna Karan and DKNY make G-III Apparel Group more valuable in a couple of years? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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