Rumors Of LVMH Selling The US Fashion Brand DKNY Have Been Confirmed.

U.S.A Latest fashion brand The rumor that DKNY was sold by LVMH has been confirmed. The latest news from the US is that G-III fashion group, the clothing and accessories manufacturer of the United States, will buy fashion brand Donna Karan and DKNY parent DKI at the price of 650 million US dollars from LVMH. The acquisition is expected to be completed by the end of 2016.

In contrast, LVMH bought DKI for $643 million in 2001. DKI is a big failure in LVMH investment case. "DKNY is a large fashion brand in the United States, but all efforts made by LVMH group to improve the brand value are not effective." Earlier, an insider said.

According to people familiar with the matter, before the completion of the acquisition, Maxwell Osbourne and Dao-Yi will continue to be the creative director of DKNY brand. Last year, DKI replaced many management executives and closed the flagship store of Madison Avenue. At present, DKNY has earned about $300 million, and has established offices in New York, Milan and Hongkong, with brand stores spanning the United States, Asia and Europe.

July 2015, founder and chief of DKI Designer Donna Karan quit her job for more than 30 years, and Donna Karan's namesake brand was merged to DKNY. The company no longer sought Donna Karan's successor as the chief designer of Donna Karan Collection, and suspended the brand's fashion show and new series.

The acquisition will be carried out by issuing new shares and cash, of which $75 million worth of G-III group common stock will be directly held by LVMH. Up to now, the G-III group has acquired $525 million from Barclays and J.P. Morgan bank, and has received a 6 year long credit rating of $450 million from the Bank of Australia, Adelaide. The analysis indicates that the acquisition process is not affected by funding problems.

Barclays Bank is the exclusive financial advisor of G-III group, Barack Ferrazzano Kirschbaum & Nagelberg LLP as LVMH legal adviser, G-III group does not plan to adjust its performance targets before the completion of the acquisition, but excluding the acquisition accounting fees and other adjustments, the group initially estimated that the acquisition expenditure will reduce profits before January 31, 2018.

In the past few years, G-III group has successfully spanformed its diversification strategy. At present, the group is looking for multiple market opportunities to expand. The group said that the scale and diversification of DKI would help to increase its portfolio in international fashion brands. Last June, Karl Lagerfeld cooperated with G-III group and set up a joint venture aimed at re entering the US market and expanding its brand business.

G-III group is one of the largest clothing and garment producers and importers in the United States. Its headquarters is in New York. Founded in 1956, it started with European technology and soon became the world's leading designer and manufacturer of high quality sportswear, bags and so on. The group now has more than 25 departments. It owns Vilebrequin, Andrew Marc, Marc New York, G.H. Bass and Wilsons Leather brand, and its business is mainly carried out under a series of authorization, including the PVH group and the company, including the company, the company, the company, the company, the company, and so on.