Written by Tanisha Cardozo || Team Allycaral
Prada has announced the successful acquisition of Versace in a $1.38bn deal, marking one of the most significant shifts in the luxury fashion sector in recent years. The purchase brings together two of Italy’s most celebrated fashion houses, strengthening Prada’s position in an increasingly competitive global luxury market dominated by conglomerates such as LVMH. The price tag represents a considerable loss for Versace’s former owner, Capri Holdings, which acquired the brand for approximately $2bn in 2018.
The sale comes at a time when Versace has experienced slowing sales, along with other Capri-owned labels including Michael Kors and Jimmy Choo. During its ownership, Capri oversaw a creative shift at Versace, steering the brand away from its signature ornate aesthetic toward more minimalist styles while simultaneously increasing prices. The transition followed the departure of Donatella Versace, who stepped down as creative chief in March after leading the fashion house for 27 years following her brother Gianni’s death.
She was succeeded by Dario Vitale, formerly a design director at Prada’s youth-oriented label, Miu Miu. Capri Holdings stated that proceeds from the sale will be used to significantly reduce its debt, strengthening its financial position moving forward. Meanwhile, Prada expressed optimism about Versace’s long-term potential, with Prada CEO Andrea Guerra noting earlier this year that the brand represents a major strategic opportunity.
Prada confirmed in a brief statement that all regulatory approvals have been secured, officially closing the acquisition and ushering in a new era for Versace under Prada’s expanding luxury portfolio.
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