If you’re a fashion enthusiast, then you might have come across the rumors that Versace has been sold to Michael Kors. While some may believe it, others are still skeptical about the news. In this article, we’ll explore the details of the alleged acquisition and see if there’s any truth to it.
Background
Versace is an Italian luxury fashion company that was founded in 1978 by Gianni Versace. The brand is known for its bold designs and flashy prints and has been a favorite among celebrities and high-profile individuals. In September 2018, the company’s founder’s sister, Donatella Versace, announced that they were open to new investments to help grow their brand.
On the other hand, Michael Kors is an American fashion company that was founded in 1981. The brand is known for its classic designs and has become a household name in the fashion industry. Michael Kors Holdings Limited is listed on the New York Stock Exchange (NYSE) with a market cap of approximately $6.5 billion.
The Acquisition
In September 2018, reports began circulating that Michael Kors was in talks to buy Versace for $2 billion. The rumors were fueled by comments made by Donatella Versace herself, who said that they were looking for investors to “take us to the next level.” She also mentioned that they were looking for investors who would respect their brand’s heritage and support their vision.
The news of the potential acquisition caused quite a stir in the fashion world, with many expressing their concerns about what it would mean for Versace’s identity if it were owned by an American company like Michael Kors.
The Verdict
After much speculation and anticipation, it was announced in November 2018 that Michael Kors had indeed acquired Versace for $2.12 billion. The deal was completed through Michael Kors Holdings Limited, which was then renamed to Capri Holdings Limited. Donatella Versace remained as the company’s creative director, and the brand has continued to operate as an independent entity.
What Does It Mean?
While the acquisition may have seemed surprising at first, it actually makes sense for both companies. With this acquisition, Michael Kors has become a major player in the high-end luxury market and has diversified its portfolio beyond its traditional mid-range offerings. On the other hand, Versace now has access to Michael Kors’ resources and infrastructure, which will undoubtedly help them expand their reach and grow their brand.
Conclusion
In conclusion, it is true that Versace has been sold to Michael Kors. While some may have reservations about what this means for Versace’s identity and legacy, it seems that both companies are excited about the opportunities this acquisition will bring. Only time will tell how this partnership will play out, but we can be sure that it will be interesting to watch.