LVMH sells off DKNY in a $650 million deal
French luxury giant Moët Hennessy Louis Vuitton (LVMH) is selling the Donna Karan clothing brand to US group G-III Apparel in a $650 million (£496 million) deal.
The DKNY Fashion was bought by LVMH in 2001, owner of Christian Dior, Kenzo and Sephora, and struggled to turn the loss-making fashion brand around.
The design and licensing specialist G-III Apparel will acquire Donna Karan International in late 2016 or early 2017. The New York based apparel group, already owning brands such as Vilebrequin and Andrew Marc, makes clothing for Calvin Klein, Tommy Hilfiger and Karl Lagerfeld.
Founded in 1984 by Donna Karan, the brand was known for transforming the wardrobes of businesswomen in the Eighties and Nineties with sleek and sophisticated mix-and-match pieces.
The designer expanded the Donna Karan New York brand by creating a less expensive clothing line for younger women called DKNY.
Co-founder Donna Karan later stepped down as design chief in 2015.
The US design house counts Hillary Clinton and Michelle Obama as fans.