According to WWD, Tommy Hilfiger is among those planning to privately invest in Michael Kors. Kors is hoping to receive $500 million to fund his global expansion plans and hired Morgan Stanley to sell equity stake of 25%. Financing is expected to be finalized next month.
Although, Hilfiger hasn’t confirmed whether or not he is going to invest in Kors, he said, “Anybody would be crazy not to invest in it. Michael Kors is the next major global player in my eyes.” If Tommy Hilfiger funds Kors expansion he would be joining previous partners who were the original investors in Tommy Hilfiger.
Michael Kors, generates about $900 million in volume, and is expected to get private funding followed by an in initial public offering. Some speculate that the company may be worth over $2 billion. [WWD}