Michael Kors Is Close to Buying Versace for $2 Billion
- Author: Eleanor Harrison Sep 27, 2018,
Sep 27, 2018, 1:08
Neither Versace nor Kors responded to a request for comment. He's not buying a new baroque-inspired coat or redecorating his home with Versace's home collection, but may be buying the entire company for a cool $2 billion, aka the same cost as 493,827 limited edition Palazzo Empire bags.
Versace is one of a clutch of family-owned, independent Italian brands that have regularly been cited as attractive targets at a time when the luxury industry is riding high on strong demand from Chinese consumers.
The leader of the pack is every mom's favorite handbag maker, Kors.
Headquartered in London, Michael Kors who has its roots are in the USA, could announce a deal as soon as this week, said the reports which cited unnamed sources.
Another measure both brands should take is also separating Michael Kors (the founder) from this process (at least publicly) to help in quelling some of the negative sentiment surrounding the move.
For more on reports of Michael Kors purchasing Versace, follow on over to Reuters.
It didn't get any hotter on the runway at this years Paris Fashion Week then the The Finale Versace Fashion Catwalk Haute Couture Fashion Show with celebs like Gigi Hadid.
It has been less than a year since Kors shelled out $1.2 billion to buy Jimmy Choo.
"Kors has not fully integrated the [Jimmy Choo] business", Wells Fargo analyst Ike Boruchow wrote, adding that a Versace deal is "possibly doing too much too quickly".
The Milan-based label, founded in 1978 by Gianni Versace, has been run by his family since he was murdered 21 years ago.
Italian Fashion House Versace opens the Haute Couture Fashion Week. "They needed a buyer who could make heavy investments". "It was overpriced", the source said.
The Versace family controls 80 percent of the company while Blackstone owns the remaining 20 percent.
He added, " Versace has struggled to grow sales.
Versace had revenue of €686m euros and returned to profit in 2017, according to figures provided by the company.