Michael Kors to Buy Versace

This week the fashion world was shook as it was announced Michael Kors was to buy Versace at the very reasonable price of $2.1 billion dollars. As the leading luxury brand of decades, Versace has been worn (and adored) by countless of multimillionaires, royals, and superstars alike. Let’s look back on this lavish brand from its infancy to its speculative transformation it will be making to Michael Kors.

Versace: The Man Behind the Brand

Gianni Versace began the brand in 1978 in Milan, Italy, with his first ready-to-wear collection being appropriately named Gianni Versace Donna. The first boutique was opened in the same year in Milan, named Via della Spiga. By 1982, the company had expanded to design furnishings, perfume, and jewelry. His designs were seen as combining sexuality with classicism, and were artistic pieces beyond just being fashionable.

Unfourtonately, Versace was shot on the 15^th of July in 1997 in Miami beach at the age of 50. His fashion empire had reached over a quarter of a billion dollars at the time of his death, with dozens of Versace stores around the world.

Michael Kors: the Takeover

In July of 2017, Michael Kors bought out Jimmy Choo for $1.2 billion dollars. With the taking over of Versace, Michael Kors announced the company would be renamed Capri Holdings. With the change in the company name, one could speculate that this is not the end but just the beginning to Michael Kors buying out other fashion houses. Michael Kors still has their rival, LVMH of France, to contest with. LVMH is another fashion holdings company that includes Moet & Chandon, Hennessy, and Dior.

Conclusion

Nothing is yet certain until the deal is closed between the two fashion houses. Within recent years, Versace had not proven to be as successful as they once were. Many stores were shut down within the past 5 years, so the deal is not overly surprising. Many possibly thought we would still have Versace for a couple more decades, but perhaps the owners were more reluctant to face bankruptcy and were able to sell out before things worsened. The future for vogue fashion has not looked more uncertain than presently.