Michael Kors Set to Purchase Versace *Update* Confirmed!

Discussion in 'Designers and Collections' started by Fashionstuff, Sep 24, 2018.

  1. Fashionstuff

    Fashionstuff http://fashionworldstuff.

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    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."
     
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  2. amby

    amby Active Member

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    No sure how I feel about this
     
  3. GivenchyAddict

    GivenchyAddict Well-Known Member

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    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?!"
     
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  4. GERGIN

    GERGIN Well-Known Member

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    I am confusion.
     
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  5. billiejbob

    billiejbob Active Member

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    Wait what?
     
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  6. Lola701

    Lola701 Well-Known Member

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    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.
     
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  7. dodencebt

    dodencebt Well-Known Member

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

    Fashionstuff http://fashionworldstuff.

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    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?
     
  9. Salvatore

    Salvatore Wanderlust

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    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.
     
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  10. ToniOrtega

    ToniOrtega Member

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    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!).
     
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  11. Scotty

    Scotty Well-Known Member

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

    jeanclaude Active Member

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

    dodencebt Well-Known Member

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    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.
     
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  14. Fashionstuff

    Fashionstuff http://fashionworldstuff.

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    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! )
     
  15. Marc10

    Marc10 Moderator

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

    mepps Active Member

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

    Scotty Well-Known Member

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

    Wintergreen Active Member

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    I read they were gonna leave creative control to the Versace family.
     
  19. Lola701

    Lola701 Well-Known Member

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    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...
     
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  20. Salvatore

    Salvatore Wanderlust

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    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.
     

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