In a shocking twist, the longtime legendary brand Versace has been sold to Michael Kors Holdings in a $2.1 billion deal. In July 2017, Michael Kors also bought out Jimmy Choo, luxury shoe brand. Now with three companies total, this new empire is now rebranding themselves as Capri Holdings. All three name brands are now owned by Michael Kors and he will be folding all three companies into one new entity.
"Michael Kors is reportedly set to buy Versace for $2 billion this week" Gianni Versace sweetie, I’m so sorry
— femme fatale (@eliesaaab) September 24, 2018
The fashion community is having an interesting reaction to the deal made to sell Versace. Versace is comprised of very high fashion and elegant pieces that have always been classic and always have a modern and different take on fashion. Michael Kors is considered to be more of an everyday wear and their bags are their most popular item within the company.
Donatella Versace is said to be staying with the label and the Versace family still owns a large percent of Versace. Donatella will continue to help lead the now Capri Holdings on the creative side of the brand.
She posted on her Instagram on September 27, “First of all, I wanted to let you know that I am NOT going anywhere, so for those who wanted to get rid of me, well…it ain’t happening!
I also wanted to reassure you that Versace will remain ITALIAN, Made in Italy and that it will keep its GLAMOUR, DARING and INCLUSIVE attitude that has made you all love it. This is just the beginning of an exciting, new adventure that I hope you will live together with me!
Aside from just the change of name, Michael Kors displayed in their outline plan for the future of Versace. They would like to increase the amount of stores Versace has worldwide from 200 to 300 storefronts and, additionally, expand men’s and women’s accessories and shoe lines.
Consumers have not necessarily been responding to this buyout very well. People all around the world really respect and love Versace for being so different and experimental with fashion. The brand has always made an imprint on fashion in the best way possible.
As it seems, some people are enraged and some people are all in for this collaboration of these two amazing designers. Followers and fans of the company don’t want Versace to change their image and ultimately change for the worse. Although, this could be a very advantageous deal for both brands — a good rebrand never hurts. It seems as though Versace is keeping their core values and doesn’t want to stray from their unique style that have impacted the fashion community with over the decades.