The household American brand, Michael Kors has bought Italian powerhouse Versace for the large ticket price of 2.12 billion dollars. This occurrence has caused plenty of repercussions from angry fans and fashion lovers everywhere. Although the buyout is being seen in a very negative light, paired with horrible tweets and judgmental articles, the overall backlash is more prominent than what is really happening.
Nacho Picasso tweeted, “When Michael Kors buys Versace don’t be trynna act like your Michael Kors is Versace!?”
Popular fashion blogger, Bryan Boy, tweeted, “Hold on.
Michael Kors is buying Versace??????
????
?????
?????
Am I awake or what”
Another fan, @eliesaaab tweeted, ” Michael Kors is reportedly set to buy Versace for $2 billion this week” Gianni Versace sweetie, I’m so sorry”
Donatella Versace (Right) and Michael Kors (Left). Courtesy of glamor.com
Overall, the tone on Twitter holds negative opinions on the occasion. There were many more angry fans defending Gianni and the Versace name. The worry of many mega fans lies in the belief that Versace products will be sold in low-end stores, which has been the fate of many Michael Kors products.
It is a fast-moving time in retail, and this buyout means change, but it’s not quite as dramatic as fans are seeing it. The truth of the matter is that the company we know as the Michael Holdings, formally known as Capri Holdings owns the renowned Jimmy Choo. The CEO of MK Holdings, John D. Idol stated, “The acquisition of Versace is an important milestone for our group…We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”
Let’s also clear the air on some myths that have been stirring in the rumor-sphere, Donatella is not going anywhere. Part of the deal includes her remaining the creative director, despite long-lived rumors of her retirement. Donatella said, “My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.” The family will also continue to be stakeholders of Capri Holdings. Donatella’s brother Santos and daughter Allegra will keep their large stake in the label as part of the acquisition of Versace.
Allegra and Donatella Versace attending a cocktail party at the Versace Boutique on October 24.
Courtesy of GettyImages
Next, myth busted: this is a good and increasingly normal move. Retail and fashion have moved toward a “Game of Conglomerates.” This means that more owners are doing more versatile company groupings. French fashion player, LVMH, owns Louis Vuitton, Dior, Céline, Fendi, Givenchy and several other fashion and non-fashion luxury brands. The American label MK is following this path toward success and fans should be excited for what is to come.
It is normal for change to occur in the crazy world of fashion. No one will know for sure what other factors influence the brand, sales and image. Brands that change and create a new life are usually rewarded with profitable and successful outcomes. There is a new normal for luxury that is expected by millennial and Gen Z, but there is no telling what will happen next. This gasping for air on the purchase of Versace by Michael Kors may be a little overkill. Take a breath, watch/re-watch the American Crime Story: The Assassination of Gianni Versace and a few recent Versace shows, and trust that this company and family knows what they’re doing when it comes to business.
There is nothing to be scared of, fashion, retail, designer and luxury are constantly changing. This is just one of the many moves being made in the industry. People are also talking about both brands, and that is always good for sales, image and buzz.
As Gianni Versace once said: “I am not interested in the past, except as the road to the future,” and that is all that’s needed to know in a time like this. The future and evolution of fashion are just what makes fashion, fashion.