Private equity firm Cinven has agreed to sell upmarket British shoe brand Kurt Geiger to New York-listed fashion group Steve Madden for around £289mn, in a deal that underlines the difficulty of buyout investments in European fashion businesses.
The UK-headquartered buyout group bought the company for about £245mn almost 10 years ago, meaning it grew the value by 18 per cent during its ownership. Buyout groups usually aim to multiply the value of the businesses they own within a typical span of five years.
The sale of Kurt Geiger, which was founded in 1963 on London’s Bond Street, marks the latest fashion investment in Europe to underwhelm after the sector was hit by the pandemic and weak consumer spending.
“It has been a privilege to support such an iconic company, and we look forward to seeing the brand continue to thrive in its next chapter,” said Maxim Crewe, Cinven’s head of consumer and financial services.
Kurt Geiger, best known for high heels that it sells under its own name as well as the Carvela brand, has more than 70 stores across the UK and US, and also operates in Europe, the Middle East and Asia.
Cinven said during the period of its ownership, Kurt Geiger had expanded its international presence and online sales.
A person familiar with the business said revenue was around £400mn in the year to January 2025, up 42 per cent compared with the year to December 2015, when Cinven agreed to buy the company.
The pandemic led to a closure of stores while the trend to work from home led to people buying fewer shoes and handbags, they said. But activity had since recovered to above pre-pandemic levels.
Among private equity investments in European fashion groups that have struggled, Dr Martens is now trading at 80 per cent below its price when it was floated by Permira in 2021.
The buyout group canned an IPO of luxury sneaker retailer Golden Goose last year after bookrunners suggested it would price near the bottom of a previously anticipated range. Apollo agreed to take ownership of luxury streetwear retailer End Clothing from fellow private markets firm Carlyle as part of a restructuring.
Broader challenges faced by private equity firms seeking to exit businesses were also highlighted on Thursday as HBX Group, a hotel room wholesaler in which Cinven is one of the shareholders, fell as much as 11 per cent during its initial public offering in Spain.
Higher interest rates since 2022 have contributed to a drop in company valuations and caused a chasm on price between sellers and potential buyers. While rates have since fallen, a post-pandemic slowdown in IPO markets has continued to hamper a key portfolio company exit route.