Donatella Versace, the creative director of the world-famous fashion house Versace, recently sold the company to an American fashion group for a whopping $2.1 billion. The sale was completed in September 2018 and marks a significant change in the fashion industry.
Background
Versace was founded by Gianni Versace in 1978 in Milan, Italy. The brand quickly gained popularity for its bold and daring designs that were worn by many celebrities including Princess Diana, Elton John, and Madonna. However, tragedy struck in 1997 when Gianni Versace was murdered outside his Miami Beach home.
Donatella’s Rise
After her brother’s death, Donatella took over as the creative director of Versace and continued to uphold the brand’s reputation for luxury and glamour. She brought her own unique vision to the brand with her love for bright colors, daring designs and pop culture influences.
The Sale
In September 2018, it was announced that Donatella had sold 20% of Versace to Michael Kors Holdings Ltd., an American fashion group known for its affordable luxury products. The deal was valued at $2.1 billion and made Michael Kors Holdings Ltd. one of the biggest players in the luxury fashion industry.
The Reason Behind The Sale
Many people were surprised by Donatella’s decision to sell such a significant stake in the company she had worked so hard to build. However, she stated that the sale was necessary to ensure that Versace remained competitive in an increasingly crowded market.
In an interview with CNN Style, Donatella said “We have been approached by many people who want to buy us but we needed a partner who would be able to help us grow globally.” She added “We needed someone who could provide us with infrastructure, logistics, and technology. Michael Kors is the perfect partner for us.”
The Future of Versace
Although the sale marks a significant change for Versace, Donatella remains at the helm of the brand as the creative director. She has stated that she will continue to design for the brand and that she sees this partnership as an opportunity for growth.
With Michael Kors Holdings Ltd.’s resources and expertise, it is likely that we will see new collaborations and expanded product lines from Versace in the coming years. However, fans of the brand can rest assured that its signature style and glamour will remain intact.
Conclusion
In conclusion, Donatella Versace’s decision to sell 20% of Versace to Michael Kors Holdings Ltd. for $2.1 billion marks a significant change in the fashion industry. The sale was necessary to ensure that Versace remained competitive in an increasingly crowded market. With Michael Kors Holdings Ltd.’s resources and expertise, it is likely that we will see new collaborations and expanded product lines from Versace in the coming years while still maintaining its signature style and glamour.