US Fashion Giant Michael Kors Buys Italian Luxury Fashion Versace For $2.1 Billion
A few days ago, information surfaced that Italian luxury fashion brand Versace was on the verge of being purchased by Michael Kors for $2.1 billion. This rumour had many fashion lovers and enthusiasts shocked and a few even went forward to plead with Versace’s creative director Donatella Versace to not go through with the deal, however, this was not to be as both brands made statements today, 25 September, that confirmed the take over by Michael Kors.
The takeover of Versace by the US fashion giant Michael Kors has had many lovers of the luxury brand worried for the brand’s future and a potential loss of its distinctiveness but this fear might be quite unfounded as Michael Kors itself is a luxury brand, albeit considerably more accessible than Versace.
Donatella Versace, who has acted as creative director of the brand since the murder of her brother Gianni Versace, will remain at the helms of affairs for Versace and in the words of Michael Kors CEO, John Idol, “will continue to lead Versace’s creative vision.
This purchase of Versace by Michael Kors follows their purchase of Jimmy Choo in 2017 and pushes the brand so much closer to becoming a luxury fashion conglomerate and serves as a catalyst for the brand’s change in name to Capri Holdings. This was all foreshadowed by the words of John Idol after the purchase of Jimmy Choo for $1.2 billion:
“We are creating a global luxury fashion group. Our focus is on international fashion luxury that are industry leaders.”
Under Michael Kors’s umbrella, Versace is to increase its numbers of retail outlets from 200 to 300 stores as well as to boost the percentage of footwear and accessories – a category that is often more affordable and faster-selling – from 35% to 60% of revenue.
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