On September 25th, 2018, news broke that Donatella Versace had sold her family’s fashion brand to Michael Kors Holdings Limited (now known as Capri Holdings Limited) for a staggering $2.12 billion. This news sent shockwaves through the fashion industry and left many wondering what the future held for the iconic Italian label.
The Background
Versace was founded in 1978 by Gianni Versace and quickly became one of the most recognizable fashion brands in the world. Known for its bold prints, bright colors, and innovative designs, Versace was a favorite among celebrities and fashion lovers alike.
Tragically, Gianni Versace was murdered in 1997, leaving his sister Donatella to take over as creative director of the company.
Under Donatella’s leadership, Versace continued to thrive and expand its reach around the world. In recent years, the company has undergone a period of transformation as it sought to adapt to changing consumer trends and compete with newer, digitally-native brands.
The Sale
In September 2018, it was announced that Michael Kors Holdings Limited had acquired Versace for $2. The sale included both the fashion house itself as well as all of its subsidiaries and intellectual property rights.
The sale was seen as a major coup for Michael Kors Holdings Limited which was looking to expand its portfolio beyond its eponymous brand. For Donatella Versace and her family, the sale represented a major windfall and an opportunity to secure their financial future.
What Happened Next?
Following the sale, there were questions about how much control Donatella would retain over the brand she had helped build into a global powerhouse. In a statement released at the time of the sale, Donatella said that she would remain on as creative director and that the brand would continue to operate independently.
Since the sale, Versace has continued to make headlines with its bold designs and high-profile collaborations. In 2019, the brand teamed up with Zayn Malik for a capsule collection that sold out almost immediately.
Later that year, Versace made history by staging its first-ever runway show in New York City.
The Bottom Line
Despite initial concerns about what the sale would mean for Versace’s future, it seems that the brand has emerged stronger than ever. With a new owner and fresh investment, Versace is well-positioned to continue pushing boundaries and setting trends in the fashion industry for years to come.