How iconic Italian luxury brand Versace became Michael Kors’ US$2.12 billion prize
Move, which aims to expand brand’s reach and revenues, comes 21 years after murder of founder Gianni Versace – arguably then at the peak of his powers
The American fashion company Michael Kors agreed to buy the Italian luxury fashion house Versace in a US$2.12 billion deal on Tuesday.
As part of the agreement, Michael Kors will change its name to Capri Holdings.
The company says it aims to boost Versace’s revenue from about US$808 million to US$2 billion, expand its footprint from 200 stores to about 300 stores, and increase the number of shoes and accessories it sells.
Developing Versace’s online presence will also be a focus.
“We are excited to have Versace as part of our family of luxury brands and we are committed to investing in its growth,” John Idol, chairman and CEO of Michael Kors, said as he announced the acquisition.
We are excited to have Versace as part of our family of luxury brands and we are committed to investing in its growth
Donatella Versace, the current vice-president of Versace, said: “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.
“Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential.”
Donatella took over as creative director after the 1997 murder of her brother Gianni Versace, the iconic founder of the beloved fashion, while her brother, Santo, became CEO.
Allegra Versace, Donatella’s daughter, who was 11 at the time of Gianni’s death, inherited 50 per cent of the company – making her a near-billionaire after the acquisition of the company by Michael Kors, according to The Guardian newspaper in Britain.