In recent fashion news, Michael Kors has acquired Versace for $2.1 billion. Just Monday it was rumored that this was a potential deal and Tuesday morning the two companies made the announcement.
In a news release, Donatella Versace stated that,
“It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra… I am proud that Versace remains very strong in both fashion and modern culture”.
Versace is ready to move the brand on to bigger but not necessarily better things…
Versace followers took to Twitter to state their discontent with the purchase of the brand by Michael Kors.
Although many fashion lovers deem the Michael Kors brand as “tacky” or “basic”, the brand has acquired other high fashion brands within the last few years making it a fashion monopoly that many are unaware of. Just last year Kors acquired the luxury shoes and accessories brand Jimmy Choo in a $1.2 billion deal.
On the other side, John D. Idol, the Michael Kors CEO stated,
“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth…With the full resources of our group, we believe that Versace will grow to over U.S. $2 billion in revenues”.
The two companies view this deal as a great investment as well as having the potential to grow both brands both creatively and financially. Kors stated that it would like to put out more Versace products in stores which they predict will bring revenues up to 60% (currently 35%).
This deal has the potential to push the Michael Kors brand even further than America. Kors hopes to further enter the Asian market with this acquisition.
HCXO,
Tori