Michael Kors has unveiled an initial public offering that values his brand at $3.63 billion.
The American designer is ready to start selling shares that are expected to earn him a personal fortune of $111million.
Kors is said to be planning to sell 48 million shares ranging from $17-19.
Insiders say that the company’s valuations are right to be so high.
“It’s a marvellously successful company, and I think an IPO will be very successful,” Laurence Leeds, chairman of Buckingham Capital Management, told WWD. “They’re putting a high valuation on the company and it deserves a high valuation. The company is very well run, is extremely successful, has a splendid track record and excellent management.”
However, the sale will not mean the departure of Kors.
In fact the designer has signed a contract that states he will be employed by the firm until his death, he becomes disabled or his is dismissed “for cause”.
The document also says that he shall have “creative and aesthetic control of the products produced and sold under or bearing the ‘Michael Kors’ and related trademarks, including exclusive control of the design of such products, provided that the exercise of such control must be commercially reasonable”.
WWD also reports that the contract is rumoured to include details of a minimum salary of $2.5 million for life for Kors, plus a bonus and other perks, such as a car and driver and health club membership.
The sale is another step in the remarkable story of Kors’ career.
The brand has been going for thirty years, but was threatened in the early nineties when he reached bankruptcy.©COVER MEDIA