BREAKING: LVMH Louis Vuitton Moët Hennessy Sells Donna Karan To G-III Apparel for $650 Million

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DKNY Fall 2016 Ready To Wear2

Last week, donbleek.com exclusively reported that LVMH Louis Vuitton Moët Hennessy, owner of DKNY and DKI was trying to sell the New York-based company (see it here).

The company was targeting a single, specific American buyer, rather than putting it out to multiple bidders and they apparently found one.

LVMH agreed to sell Donna Karan International to G-III Apparel Group Ltd. for an enterprise value of $650 million, a rare disposal for the French luxury-goods maker, which failed to turn around a label that once defined workplace attire for successful U.S. women,” according to BoF.

When G-III approached us about acquiring the brand, we concluded that the time was right,” Toni Belloni, managing director of LVMH, said in a statement Monday. “G-III will gain the Donna Karan and DKNY brands, the companies said. The transaction makes it likely that LVMH announces plans to buy back 1 billion euros ($1.1 billion) of stock,” wrote Fred Speirs, an analyst at UBS. “LVMH is scheduled to report results Tuesday.”

In 2014, donbleek.com first reported that American fashion designer Donna Karan closed the doors to her New York flagship store (see it here). Numerous outlets and industry insiders reported that the store closure could be due to a slowdown in demand for the Donna Karen New York Collection label, which has lost some of its luster since being acquired by LVMH in 2001.

DKI was founded in 1984 by Karen, her late husband Stephan Weiss and Takiyho Inc. DKI went public on the New York Stock Exchange in 1996 and LVMH Moet Hennessey Louis Vuitton paid $243 million for all outstanding shares in DKI, plus $400 million for Gabrielle Studio Inc., the licensor of the Donna Karen trademarks in 2001.

In July 2015, Donna Karan stepped down as chief designer of Donna Karan International to devote greater time to her Urban Zen Company and Urban Zen Foundation, (see it here). However she remained a close adviser to DKI under a long-term agreement, according to the company. Urban Zen is a stand-alone company owned by Karan herself.

Public School’s Dao-Yi Chow & Maxwell Osborne were hired as DKNY‘s new creative directors last year (see it here).

DKNY Fall 2016 Ready To Wear1

Photos Credit: Marcus Tondo/Indigital.tv 

Source/additional reporting via BoF

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Donovan

Donovan is the CEO and Editor-In-Chief of www.dmfashionbook.com. For all general inquiries please email don@dmfashionbook.com Donovan has a BA in Journalism & Media Studies from the prestigious Rutgers University. He's currently studying entertainment and fashion law.