Capri Holdings draws buyer interest as Michael Kors turnaround continues
WWD reports Capri, owner of Michael Kors and Jimmy Choo, has connected with potential buyers who have reviewed its books; the process is informal and not near-term. An $809 million derivative liability tied to currency hedges is cited as a change-of-control hurdle; Capri declined to comment on “rumors or speculation.”
Capri Holdings, the parent of Michael Kors and Jimmy Choo, has been in contact with investors potentially interested in buying the business, and some would-be acquirers have reviewed its books, people familiar with the matter told WWD.
Informal process, not near-term
The process remains informal; one banker cautioned that a deal would not happen in the “near term,” WWD reported on 22 September. A Capri spokeswoman declined to comment on “rumors or speculation.” Capri sold Versace to Prada for $1.4 billion last year after a blocked $8.5 billion Tapestry takeover collapsed in late 2024.
CEO and chairman John Idol told investors at a conference last week that Michael Kors was “very much” off trend some 18 months ago; the company is cutting promotions, increasing marketing and refreshing stores to rebuild growth. Capri’s market capitalization is down about 40% this year to around $1.7 billion.
Hedge liability hurdle
Sources said an $809 million derivative liability — the mark-to-market fair value of net investment hedge contracts as of June, Capri says, not a fixed liability — could come due immediately on a change of control. Capri’s hedging book includes about $3.5 billion of Swiss-franc and $2.4 billion of euro cross-currency hedges. Attorney Jonathan Lazarow told WWD a capable banker could structure around the figure, and that selling Michael Kors or Jimmy Choo separately remain real options.
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