Versace embraced by Michel Kors corp leaving the Chinese jealous
The American group Michael Kors will buy Italian fashion house Versace for $ 2 billion. According to Reuters, the companies will announce the deal this week. According to the FT, this can happen on Tuesday, September 25, at a meeting with the participation of Vice President and Chief Designer of the fashion house Donatella Versace, sister of the late Versace founder Gianni. Earlier, the Italian newspaper Corriere della Sera reported about the deal.
The sources said that following the deal, the former owner of the fashion house – the investment fund Blackstone, who bought a 20% stake in Versace for 210 million euros in 2014, will entirely pull out of the Italian company. Michael Kors will also receive the remaining share, which belongs to the Versace family. Nevertheless, the family of the founder of the Italian fashion house will continue to take part in Versace affairs.
Representatives of both companies declined to comment. FT explains the purchase by Michael Kors of the Italian luxury brand by the desire of the US company to compete with the European conglomerates LVMH (owns the brands Louis Vuitton, Givenchy, Guerlain, Hennessy, etc.), Kering (Gucci, Yves Saint Laurent, Balenciaga, etc.) and Richemont (Cartier , Chloé, and others).
Media failed to promptly receive comments from Blackstone. The FT source specified that earlier Versace, one of the last independent fashion houses, had postponed IPO plans, finding the market conditions unsuitable. Blackstone, as noted by Reuters, was disappointed by this decision.
Blackstone will no longer invest in Versace and began to look for a buyer who was ready for major investments, the agency’s source explained. The fund gradually persuaded the Versace family to consider selling the house, offering it a number of buyers, including Michael Kors.