Big news out of the fashion world today. Michael Kors Holdings has acquired Versace for $2.1 billion. And the group, who already owns Michael Kors and Jimmy Choo, will rename itself Capri Holdings.
John Idol, chairman and chief executive officer of Kors, said: “The acquisition of Versace is an important milestone for our group. Versace was founded in 1978. For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage.…With the full resources of our group, we believe that Versace will grow to over $2.0 billion in revenues. We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”
And Donatella Versace is very on board with this deal. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra,” she said. “I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential.”
She will remain the Creative Director of Versace. But the news hasn’t rubbed everyone the right way. Some internet comments haven’t been exactly supportive.
“The brand about to go from high end luxury to TJ Maxx & Walmart.”
“versace selling to michael kors is like when ur ex starts dating someone ugly”
“Michael Kors buying Versace is like that girl who thinks that buying & wearing cool clothes gives her clout & make her a style icon. Sorry babe, you either got it or you don’t”
These are some of the negative comments that have been shared via social media. What do you think of these comments and the deal itself?
