There has been a lot of buzz in the fashion industry recently about Michael Kors buying out Versace. Rumors have been swirling for months, and finally, in September 2018, the deal was announced.
But what exactly does this mean for the two iconic fashion brands? Let’s take a closer look.
The Deal
In September 2018, Michael Kors Holdings Limited announced that they had acquired Versace for $2.12 billion. The deal included the purchase of all outstanding shares of the company, as well as the repayment of Versace’s outstanding debt. The transaction was funded in part by cash on hand and by issuing new debt.
The Reaction
The news of the acquisition was met with mixed reactions from both the fashion industry and consumers. Some were excited about the prospect of two powerhouses joining forces, while others were concerned about how this would impact Versace’s unique brand identity.
Concerns About Brand Identity
Many fans of Versace were worried that Michael Kors would water down the brand’s signature style in an attempt to make it more mainstream and accessible to a wider audience. After all, Michael Kors is known for its more affordable luxury fashion items, while Versace has always been associated with high-end luxury and exclusivity.
Impact on Business
Despite these concerns, both companies have expressed optimism about what this deal will mean for their respective businesses. Michael Kors CEO John D. Idol stated that “the acquisition of Versace is an important milestone for our group” and that it “strengthens our position in the global fashion luxury market.”
Meanwhile, Donatella Versace (who will remain involved in the company) said that “Santo (her brother) , Allegra (her daughter) and I will become shareholders in Capri Holdings Limited,” which is the new name for Michael Kors Holdings Limited. She also expressed excitement about the “huge opportunities” that will come from combining the resources of the two companies.
Conclusion
Overall, it remains to be seen how this acquisition will play out in the long run. While there are concerns about how Michael Kors will handle Versace’s brand identity, both companies seem optimistic about what the future holds. It will be interesting to see how this deal impacts the fashion industry as a whole and whether other luxury brands will follow suit and merge with more affordable fashion houses.
- Michael Kors has acquired Versace for $2.
- The deal includes all outstanding shares of Versace, as well as repayment of debt.
- There are concerns about how this acquisition will impact Versace’s brand identity.
- Both companies remain optimistic about what this deal means for their respective businesses.