Michael Kors acquires Versace in a billion-dollar deal
A new rising fashion conglomerate?
It’s official. Michael Kors has bought Versace, the Italian fashion house founded by the late Gianni Versace, now run by his sister, Donatella Versace. The approximate $2.12 billion deal was announced on Tuesday, along with the news that Michael Kors Holding is set to be renamed as Capri Holdings Limited.
According to Business of Fashion, Capri Holdings plans to increase the number of global retail stores from 200 to 300, expand its e-commerce platform, as well as grow their footwear and accessories business.
“This is a very exciting moment for Versace.” Donatella Versace said in a press release. “I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”
Despite the acquisition, Dontella will still remain as the creative helm of the Italian fashion brand, preserving the traditional aesthetics of the house. Jonathan Akeroyd will also continue as Versace’s chief executive.
It will be interesting to see how this acquisition pans out. While Versace is a high-end brand that produces items on the luxurious side, Michael Kors is more commercial with their products. Only in the early stages, it is hard to tell whether Versace will be monopolised with everyone donning well-known Medusa iconography in the near future.
Regardless, this acquisition is a huge step not only for Versace, but the Kors Corp. as a future fashion conglomerate. Versace is Michael Kor’s second big brand purchase, a year after acquiring Jimmy Choo for $1.2 billion in the July of last year. However, there is a lot more catching up to do for Capri if it wants to be as big of a conglomerate as LVMH or Kering. Acquiring the Italian fashion house, Versace is certainly a great start.
Words by Jenny Qian
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