There has been a lot of buzz in the fashion industry lately about a potential acquisition by Michael Kors. The Target: Versace, the iconic Italian luxury fashion brand.
So, did Michael Kors actually buy Versace? Let’s dive into the details.
Background
First, let’s take a step back and look at the history of both companies. Michael Kors is an American fashion brand that was founded in 1981 by designer Michael Kors.
The brand is known for its high-end clothing, accessories, and fragrances. Versace, on the other hand, is an Italian luxury fashion company that was founded in 1978 by Gianni Versace. The brand is known for its bold designs and use of vibrant colors and prints.
The Rumors
In September 2018, rumors started circulating that Michael Kors was interested in acquiring Versace. The news came as a surprise to many in the industry since Michael Kors had previously focused on more affordable luxury items while Versace had always been associated with high-end luxury.
The Confirmation
On September 25th, 2018 it was officially announced that Michael Kors Holdings Ltd (now Capri Holdings) had acquired Versace for $2.12 billion USD. The deal included all aspects of the Versace brand including its clothing lines, accessories, home goods, and fragrance divisions.
Impact
The acquisition of such an iconic luxury brand by Michael Kors has raised some questions about what this means for both companies moving forward. Some experts predict that this move will allow Michael Kors to expand their offerings into higher-end luxury items while also broadening their customer base internationally through Versace’s established presence in Europe and Asia.
Others worry that this acquisition may dilute the uniqueness of the Versace brand or result in significant changes to the company’s design aesthetic. Only time will tell how this acquisition will impact both brands.
Conclusion
In conclusion, Michael Kors did in fact acquire Versace for $2.12 billion USD in 2018. While the impact of this acquisition remains to be seen, it is clear that it marks a significant shift for both companies in the luxury fashion industry.