Michael Kors To Buy Versace For $2.1 Billion

The world of fashion is going through some major changes. Michael Kors has confirmed that it will be acquiring the Italian fashion house Versace for $2.1 billion. However, Donatella Versace, the sister of founder Gianni Versace and the brand’s director, will still lead the creative side of the business.

Jonathan Akeroyd, the brand’s boss, will also retain his position along with Versace’s senior management.

As Michael Kors will have expanded and now be comprised of three global fashion brands — Michael Kors, Jimmy Choo and Versace — the brand will officially be renamed Capri Holdings.

Michael Kors was committed to investing in Versace’s growth, according to John D Idol, the brand’s chief executive and chairman, and is hoping to achieve a revenue growth of over $2 billion.

“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,” Idol said in a statement.

In response to the acquisition, Versace said, “We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all its actions, to grow.”

By: Maytinee Kramer