Michael Kors Set to Purchase Versace *Update* Confirmed!

[Fashionstuff]

Source : Financial Times

"Michael Kors set to buy Versace in $2bn deal

Versace family and Blackstone expected to sell in deal likely to be announced on Tuesday

US luxury group Michael Kors is set to announce a deal to buy Milanese fashion house Versace in a deal worth about $2bn, according to two people briefed on the talks. The agreement, expected to be announced on Tuesday morning, will see the Versace family selling alongside US private equity firm Blackstone, which took a 20 per cent stake in Versace in 2014. At that time, the US private firm injected €150m of fresh capital into Versace and acquired €60m in stock in Versace’s family-owned holding company. A spokesman for Versace declined to comment. Michael Kors and Blackstone were not immediately available for comment. The deal would come after Versace, one of the last independent fashion houses, put the brakes on an initial public offering because market conditions were not deemed suitable, according to a person briefed on the decision. It would be the latest independent European runway brand to decide to sell in recent months. Italy’s Missoni family announced an agreement to sell a minority stake of its eponymous brand to a private equity venture backed by the Italian state before the summer, and Antwerp-based Dries Van Noten sold a majority stake to Spanish luxury group Puig in June. Meanwhile, Michael Kors has been seeking to buy up brands in order to create a US rival to European luxury conglomerates LVMH, Kering and Richemont."

 

[amby]

No sure how I feel about this

 

[GivenchyAddict]

I...

I am confused. I need to know more. My head is full of questions now. I am very close to send an email to Versace PRs with a " Wtf?!"

 

[GERGIN]

I am confusion.

 

[billiejbob]

Wait what?

 

[Lola701]

I saw an article on WWD but they said it was just a rumor.
Versace is doing great lately but I don’t understand the need to sell now.

I know Donatella, Santo and Allegra still have the majority stake but I thought they would be interested in keeping it in the family ( Donatella has a son and i guess Santo has children).

The biggest question now would be: Why Michael Kors?
I know it’s 2billion but come’on, at least make a deal with somebody who can preserve the legacy...

The Qataris, Richemont...etc. There are many more interesting candidates.

 

[dodencebt]

I guess having only a French Michael Kors in the making wasn't enough.

 

[Fashionstuff]

I saw an article on WWD but they said it was just a rumor.
Versace is doing great lately but I don’t understand the need to sell now.

I know Donatella, Santo and Allegra still have the majority stake but I thought they would be interested in keeping it in the family ( Donatella has a son and i guess Santo has children).

The biggest question now would be: Why Michael Kors?
I know it’s 2billion but come’on, at least make a deal with somebody who can preserve the legacy...

The Qataris, Richemont...etc. There are many more interesting candidates.

Richemont also on the list , i took the source as FT .

More details but not the whole article , seems Kors is up on the list.

Source : Bloomberg.com

"
The Versace family, which owns 80 percent of the company, will continue to have a role under any agreement, the people familiar with the situation said. Donatella serves as creative director, while Santo is chairman.

Italian newspaper Corriere della Sera reported earlier that Versace could be sold this week for about $2 billion, with several groups interested including Kors and Tiffany & Co. LVMH, PVH Corp. and Tapestry also looked at Versace in recent months, according to a report on Sunday by Women’s Wear Daily."

I still don't understand WHY she sells?

 

[Salvatore]

Wait ... I need a moment.
So it's not being sold to Michael Kors, but they are bidding or they definitely selling to Michael Kors ?

This does not sound good at all.

 

[ToniOrtega]

All I want (nay, need) is for Donatella to still have complete and full control over all creative decisions! (Although her most recent collection didn't do her any favors!).

 

[Scotty]

Great. Fire Donatella for sending out 6 bad collections in a row! (I'm just kidding.)

 

[jeanclaude]

"Michael Kors set to Destroy Versace" would be a more accurate headline!
More duty-free bags with logos out there...great!

 

[dodencebt]

"Michael Kors set to Destroy Versace" would be a more accurate headline!
More duty-free bags with logos out there...great!

Yes, that's my issue with this! I'm afraid if they buy Versace they are just going to turn it into a Michael Kors 2.0 because that's all they know. You can't teach someone who sells duty-free bags to the point of over saturating the world market how to maintain an exclusive brand, it just doesn't happen.

 

[Fashionstuff]

Wait ... I need a moment.
So it's not being sold to Michael Kors, but they are bidding or they definitely selling to Michael Kors ?

This does not sound good at all.

Yess.
Google, there are more sources, one blog-alike that's why i didnt take it as quelle.
But seems MK will buy it.
( I got this news coincidentally and googled to know more and i was so surprised! )

 

[Marc10]

That's the most horrifying headline I've ever read.

 

[mepps]

It's true. It's happening.
All over the news this morning.

 

[Scotty]

Are they really that much in trouble financially? Donatella's pulled through from worse. Why now?

 

[Wintergreen]

I read they were gonna leave creative control to the Versace family.

 

[Lola701]

Are they really that much in trouble financially? Donatella's pulled through from worse. Why now?

They aren’t. That’s why it’s weird...
They have been profitable since 2011.

I know from a source that they are selling more clothes than accessories but even if they wants to increase their accessories business, I wouldn’t trust Kors!

Or maybe they couldn’t resist the 2 billion offer.
Fendi choose Bernard Arnault instead of Prada at the time because he offered 1 billion...

 

[Salvatore]

Yess.
Google, there are more sources, one blog-alike that's why i didnt take it as quelle.
But seems MK will buy it.
( I got this news coincidentally and googled to know more and i was so surprised! )

Just googled it myself and I am surprised as well ! I wonder if Tisci was planning to go to Versace, but this development maybe deterred him because I still find the Burberry appointment strange. I don't know.