Fashion Law Journal
It seems like the Italian luxury fashion is reshaping. In a recent announcement, Prada has 100% acquired Versace from Capri Holdings for $1.375 including its debt. Depending on regulatory approvals and other customary closing conditions the deal is expected to be finalised in the second half of 2025. The price at which Prada bought Versace is significantly lower than what Capri Holdings had paid in 2018 which ($ 2.15 billion including debt paid for Versace). This discounted rate is mainly due to the recent financial problem that Versace has been facing.
John D. Idol, Capri’s Chairman and Chief Executive Officer, in a statement stated that, “Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”
It seems that Prada aims to diversify its brand portfolio and enhance its position in the market against its counterparts. This news comes shortly after Donatella Versace stepped down from her role as creative director after 30 years. Both the brands have different aesthetics, with Prada being minimalistic and Versace being bold will attract a new set of customers.
Prada is committed to keep the legacy of Versace and its aesthetic as it integrates it into the brand. The Prada Group’s Chairman and Executive Director stated, “We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
Prada believes in the potential of Versace, Andrea Guerra, the Group Chief Executive Officer of Prada mentions that, “Versace has huge potential. The journey will be long and will require disciplined execution and patience.”
The Prada- Versace acquisition is not just a business move it is much more. It could boost the revenue of the company and could reassert Italy’s dominance in the global luxury fashion which has been dominated by the French for a while. This could be a beginning for more strategic collaborations within the Italian luxury sector and would be momentous in shaping the next chapter of global luxury.
News Coverage by Hareena Sandhu
