Versace’s “For Sale” sign has officially transitioned to “Sold,” marking a significant milestone in the world of luxury fashion.
On Thursday, the renowned Prada Group disclosed its acquisition of the iconic Italian fashion house Versace from Capri Holdings, the parent company of popular brands Michael Kors and Jimmy Choo. The tentative purchase price stands at €1.25 billion, although the final cash consideration awaits regulatory approval. This move highlights the ongoing consolidation trend within the luxury fashion sector, reflecting the strategic positioning of high-profile brands in a competitive marketplace.
“We are thrilled to welcome Versace into the Prada Group family, embarking on an exciting new chapter for a brand that embodies our shared values of creativity, craftsmanship, and rich heritage,” stated Patrizio Bertelli, the Prada Group chairman and executive director. “Our vision is to honor Versace’s legacy by celebrating and reinterpreting its bold and timeless aesthetic. Simultaneously, we will equip it with a robust platform, fortified by years of strategic investments and deep-rooted partnerships. Our organization is primed to author a new era in Versace’s storied history, leveraging the Group’s core values while maintaining a dedicated focus on execution and excellence.”
Versace was placed on the market by Capri Holdings last November after the company’s ill-fated $8.5 million merger attempt with Tapestry, the parent company of Coach. Since then, the fashion house has faced challenges, including a steep revenue decline exceeding double digits in 2024 and a nearly 50% drop in stock value following the unsuccessful merger. In an effort to regain stability, Capri Holdings is now channeling its resources into Michael Kors, while also exploring the sale of Jimmy Choo.
“The acquisition of Versace represents a pivotal moment in our Group’s evolutionary journey, introducing a unique and complementary dimension,” commented Andrea Guerra, the CEO of Prada Group, in a statement. “Our Group’s robust infrastructure is well-established, and we have streamlined our brands’ organizational structures while enhancing our operational processes. We are fully prepared to embrace this new chapter. Despite the uncertainties in the sector, we approach the future with optimism, driven by a long-term strategic vision.”
This acquisition comes on the heels of significant internal changes within Versace: In March, the longstanding creative director Donatella Versace announced her transition to a new role as chief brand ambassador. Dario Vitale, previously with Miu Miu, has been appointed as her successor, bringing fresh perspectives to the brand’s creative direction.
Despite the leadership transitions—both creative and corporate—Prada Group has emphasized its commitment to preserving the artistic integrity and authenticity of the Versace brand, ensuring that it continues to resonate with its loyal customer base.
Stay informed about the latest trends in litigation, regulation, deals, and financial services by signing up for Finance Docket, a collaboration between Breaking Media publications Above the Law and Dealbreaker.
