Kurt Geiger which is Europe‘s larget shoe retailer has been sold to an American fashion business for £215 million. The American fashion business known as Jones Group owns fashion brands such as Nine West. Kurt Geiger is a growing business around the globe and was a promising prospect for Britain to achieve some success in this econmic downturn but now they have sold another firm to America. In the past Britain has also sold their ever famous ‘Cadbury‘ firm to the American organisation ‘Kraft’.
In the on-going problems that Britain as a whole is facing it may seem like a positive move to sell Kurt Geiger for a hefty sum as Graphite Capital a London-based private equity had only acquired it for £95 million in 2008. Since 2008 Graphite Capital had integrated a strategy that helped the organisation expand worldwide and increase it’s reputation and brand image, stores were opened in the UK, Dubai, Kuwait, Qatar and many other countries with high disposable income.The UK population must be feeling this as a loss because there are not many new organisations starting and expanding worlwide and putting Britain on the map for future prospects of employment. A nation that only offers services can not be a positive strategy as there are budget cuts that are affecting organisations in that particular sector such as the NHS. Politicians in the current climate have very high ambitions to create areas in this nation to imitate places such as Silicon Valley and offer employment and be offering what Apple or Google offer in America. Politicians however have not considered how they can integrate the whole system in the UK to meet that criteria and offer what a place like Silican Valley offers. For example the city has major corporations based their who are technologically advanced and have the space and philosphy for its employees.
Only time can tell what will happen to Kurt Geiger but according to Neil Clifford who will continue as chief executive “Kurt Geiger is still relatively young in terms of growth profile, with great potential still to be fulfilled”. Now the British firm has handed this company to America and it is their responsibility to ensure it exceeds it’s potential.