On Monday, September 24, it was reported that Michael Kors was set to buy Versace for an estimated $2.2 billion. You know Michael Kors: fashion designer of the multinational fashion company Michael Kors Holdings Limited. Versace has plenty of fame since their establishment as a luxury Italian fashion house. The following morning, on September 25th, the deal was closed and confirmed a success, as seen on Michael Kors Holdings Ltd.’s official online statement. Due to Mr. Kors’ newest acquisition, Versace will now be renamed Capri Holdings Limited.
Following this statement, many took to social media to express their outrage, likely because the to the two brands are pretty different. Mr. Kors’ designs cater to a less-extravagant style, constantly following the basics and being reasonably priced (for the materials being used). However, they do uphold great quality; meanwhile, Versace is a glitzy, expensive and elite high fashion brand that is not as accessible as Michael Kors is –for those who can afford either, at least.
Something to keep in mind, though, is that it was confirmed by Michael Kors CEO, John Idol that:
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The Versace family will become shareholders of Capri Holdings Limited.
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Donatella Versace, sister of Versace founder Gianni Versace, will continue being the company’s creative director, since her “iconic style is at the heart of the design aesthetic of Versace”, as Idol commented in the official online statement by Michael Kors Ltd.
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Versace’s Chief Executive Officer, Jonathan Akeroyd, will continue to lead the management team
It is worth mentioning that Mr. Kors had already shown interest in settling firmly as an international high fashion house: he acquired Jimmy Choo in November 2017. With earnings and growth at the top of priorities for Michael Kors Holdings Ltd., the company now has the Michael Kors Collection, Jimmy Choo and Versace (now Capri) under their wing to work with.
While many deemed the sale as the doom of Versace as a whole, it might manage to stay afloat or rise money-wise. Jimmy Choo showed successful revenue once bought by Kors, since Michael Kors Holdings Ltd. actually managed to keep delivering luxuries products for Jimmy Choo, just administered differently. The confirmation of the Versace family’s involvement in design, there’s a high chance Versace will stay the same, just under a different name and administration. Since Kors is venturing into luxe high fashion, luxe high fashion is what should continue being brought to the table by Versace (now Capri Holdings Ltd.). It is a new journey that, while many argue it would never follow Gianni Versace’s wishes, might be of good to the company for staying on top or discovering new runway-worthy things. We are curious about what the future of Versace/Capri Holdings Ltd. holds for itself. The iconic company many fashion-lovers adore and admire. Let’s just hope the timeless Medusa logo doesn’t go anywhere!