LONDON — JAB Holding has placed yet another of its luxury brands under review, Bally, as it looks to exit the fashion and luxury business altogether and focus on consumer goods, such coffee and cosmetics from its Coty Inc. division.
Shortly after announcing that it was looking for buyers or strategic options for the publicly quoted Jimmy Choo, JAB confirmed a “review of its strategic options” for Bally, including a possible sale.
According to a statement issued Monday, the Bally review process will commence shortly, and is expected to complete in the second half of the calendar year.
JAB said that since investing in Bally in 2008, it has continued to support the long-term development of the company and its leading brand, but its relationship with fashion and luxury was winding down.
“JAB has, however, made significant investments in coffee and related areas in recent years, and as a result, now considers its investment in luxury as non-core,” the company said. “JAB has, therefore, made the strategic decision to focus on its successful core businesses of consumer goods, including Coty Inc.”
The company said it does not intend to comment further until a decision on possible strategic options has been made. It is working with Bank of America Merrill Lynch or Citi on Jimmy Choo and Bally.
Bally is a leading luxury footwear company with a growing product portfolio including handbags, small leather goods, eyewear and other accessories. As reported earlier this year, Bally is moving all of its operations from London to Milan and Caslano, Switzerland, where the company was founded, as the company streamlines its structure.
It will also work with a “creative collective,” of designers, rather than one design director and create a management structure that puts the customer at the center of the business.
Frédéric de Narp, Bally’s chief executive officer, told WWD earlier this year the decisions were about creating “speed and agility” in the business, and being more reactive to market trends.
Bally is one of many big European luxury brands to consolidate in a fast-moving — and often unpredictable — market. Accessories generate about 50 percent of the business, with shoes at 45 percent and ready-to-wear, 5 percent.