Michael Kors is buying out Jimmy Choo for approximately $1.2 billion. This announcement was made by Michael Kors Holdings on Tuesday.

Following a decline in sales in the last couple of years, Jimmy Choo was put up for sale in April. The Reimann family who owned Jimmy Choo were approached by a number of companies before they eventually sold to Michael Kors. Michael Kors handbag and accessories business has been suffering a decline in sales also and the purchase of Jimmy Choo is the latest push by the fashion house to find sources of growth in an increasingly competitive retail landscape.

The acquisition will give Michael Kors a new avenue for international growth and a foothold in the luxury shoe market as the handbag market slows. Jimmy Choo will continue to be run by CEO Pierre Denis, who has held the top job since 2012

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