Michael Kors, US fashion brand, buys Italian label, Versace, in a deal worth more than $US2 billion.
The purchase ends the independence of one of the last prominent stand-alone fashion brands but Kors has big plans. In a statement released for investors, Kors (soon-to-be changed to Capri Holdings Limited) said it was committed to investing in the growth of Versace. The conglomerate-in-the-making have a goal to increase its revenue from $850 million to $2 billion over the next few years, as well as expanding from 200 to 300 retail stores.
The handbag brand is taking this opportunity to expand out of their current market. The Michael Kors brand has predominately relied on malls, department stores and outlets around the world but it has been seen that consumers are spending big elsewhere.
Creative director, Donatella Versace, has run Versace since the murder of her brother and brand founder, Gianni, in 1997. Chief executive of Michael Kors, John Idol, says that Donatella will continue to lead the creative vision at Versace.
“I’ve been approached by many interested parties, but I know this deal is the right one for this company — both now and for our future,” said Donatella in a recent statement. “Their passion and vision for Versace is clear and completely in line with mine.”
Donatella, her brother Santos and daughter Allegra will be shareholders in Capri Holdings Limited.
“We believe that being part of this group is essential to Versace’s long-term success,” 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.”
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