Michael Kors Buys Versace For $2.1 Billion - And It's Not Good News
Is this sale for better or for worse?
Donatella Versace, head creative designer of the Italian fashion house, was excited about this huge power move.
“This is a very exciting moment for Versace. It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra.
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 recognise that this next step will allow Versace to reach its full potential,” she says.
She confirmed she will stay on as creative director. The family owned 80% of the company’s shares.
Michael Kors announced they will change their name to Capri Holdings, whilst keeping the brand name.
The new owners plan to expand the number of Versace outlets to 300 stores.
The world’s reactions are mixed
The Italian brand was started by Gianni Versace in 1978. It didn’t start off with the same prestige as it holds today. Famous stars like Elton John helped give the fashion house exposure. Versace is best known for distinctive colours and design. A lot of heads turned when Elizabeth Hurley, then unknown British model, wore a customised dress as she was with Hugh Grant at the premiere of Four Weddings And A Funeral.
However, a lot of people aren’t happy with the sale. Viral posts trending on media say that Michael Kors is cheapening Versace. And private equity firm Blackstone Group, who bought 20% stake in the firm four years ago, said they’ll sell their share of ownership after the deal was announced.
Fans of the brand claim that the late Gianni, murdered in 1996, would never have agreed to the sale.
Versace’s customer base includes many famous celebrities, like Nicky Minaj, the Kardashians and even the late Michael Jackson and Princess Diana.
But it’s not all doom and gloom – Michael Kors also has its own exclusive luxury brand in Celine. Angelina Jolie, Taylor Swift and Michelle Obama are just a few customers of the Paris fashion house. On the other hand, we’re just not sure if that matters to a lot of the die-hard Versace fans out there.
Do you think the Versace sale to Michael Kors cheapens its image? Let us know what you think in the comments.
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