Italian fashion heavyweight Prada has now officially completed its takeover of the luxury house Versace after tipping £1.04 billion (€1.38 billion) in an all cash deal. On the market this week is Capri Holdings, former owner of Versace, selling the brand at a roughly $700 million loss. This announcement comes on the heels of a three year period of softened sales.
That change will also bring a major new direction, marked by this chief acquisition of artistic director Donatella Versace’s long reign. Donatella Versace, who has been the brand’s creative head for 27 years, resigned in March. She took over the reins of the fashion house in 1997 after the tragic murder of its founder, Gianni Versace. During her leadership, the fashion house was known for all things glitzy and its memorable Medusa head logo.
In her stead, Dario Vitale, who previously served as a design director at Miu Miu, moves to new creative head. To many, his appointment represents a willful change of strategy. This shift is an effort to refresh the brand and reach a larger, more diverse audience in the increasingly competitive luxury market.
Capri Holdings, the parent company of Michael Kors and Jimmy Choo in addition to Versace, acquired Versace for about $2 billion in 2018. With Versace’s recent financial woes leading to the sale of the brand, choosing to sell was an easier decision. Yet, under this tumultuous backdrop, Andrea Guerra, chief executive of Prada, was optimistic about Versace’s future potential.
“The journey will be long and will require disciplined execution and patience,” – Andrea Guerra
Guerra’s remarks underscore the hurdles that await Prada as it welcomes Versace into its fold. He admitted that breathing new life into such a storied brand takes time, sensitivity, and a lot of strategy.
Gianni Versace—the man—changed everything when he started the house in 1978. With its daring silhouettes and opulent glamour, it soon swept through the world of fashion like wildfire. The label has battled many public relations and business disasters throughout the years, but the icon is still one of the most important names in high-fashion.
Prada and Versace, both iconic Italian fashion houses, are heralding a new era with this recent move. Industry observers are interested to watch how that brand develops under its new leadership and new ownership. The acquisition signifies Prada’s desire to expand its reach in the luxury landscape. It further serves to underscore the sea changes taking place across luxury ready-to-wear as brands scramble to keep pace with changing consumer tastes.