LVMH in Talks to Sell Marc Jacobs

LVMH Moët Hennessy Louis Vuitton is in talks to sell US fashion label Marc Jacobs in a deal that could be valued at about $1 billion, according to a report from the Wall Street Journal.

The world’s largest luxury goods company has been working with advisers since last year to explore options for Marc Jacobs after being approached by potential buyers.

Brand management firms Authentic Brands, Bluestar Alliance and WHP Global are said to be among those interested, the Wall Street Journal reported.

Designer Marc Jacobs founded the brand in 1984 and grew his label into a global handbag and clothing business. LVMH acquired the brand in 1997.

LVMH rarely divests the major brands in its portfolio. In 2016, it agreed to sell the parent company of the Donna Karan and DKNY brands at a $650 million value.

On Thursday, Chief Financial Officer Cecile Cabanis noted to investors that LVMH had recently sold stakes in fashion brands Off-White and Stella McCartney.

“We will not keep brands if we believe they are not a good add-on or we are not the right operator to operate them,” Cabanis said.