Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
History
Michael Kors Holdings was founded in 1981 by aspiring fashion designer Michael Kors, who launched the Michael Kors Women’s Collection, which was sold in department stores such as Bergdorf Goodman and Saks Fifth Avenue. The company had a rocky start and declared bankruptcy in 1993, but 4 years later, Kors began designing for French house Céline and launched a lower-priced line. In 2002, Kors left the French company to focus again on his own line, which was again unprofitable.
American fashion executive John D. Idol bought the Michael Kors business in 2003 for $100 million. According to Idol, “It was losing money and probably would have gone out of business had we not bought it.” Idol became the company’s CEO and repositioned the brand ...
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