Versace Isn’t Set to Become Michael Kors
The fashion set fell into a massive frenzy yesterday morning, following the announcement that Michael Kors Holdings, Limited (now branded as Capri Holdings, Limited) is purchasing luxury Milan-based fashion house Versace for $2.12 Billion. And while the prospect of such a quintessentially American, midmarket name being slapped onto the Italian luxury house gave most readers pause, Donatella Versace talked to Business of Fashion to set the record straight.
“Versace is a luxury brand, and it’s going to stay a luxury brand," the Italian icon said. “Made in Italy, with quality.” And that’s not all: the brand is looking to expand footwear and accessories departments (and acquire factories to better control production, in the process) and keep the brand on an elevated level. Equally, they’re planning on opening more stores. Lastly, Capri Holdings Limited CEO John Idol also told BoF that there will be no cross-designing between Versace and Michael Kors. In fact, Donatella Versace still owns shares in the company, which indicates a long-term commitment on her end.
Versace also told Reuters that the acquisition will lead to the creation of jobs in Italy. “We will create new jobs and we will be a stimulus for economic development in the territories where we work,” she told Il Sole 24 Ore and later wrote on Instagram. In other words, not only does Versace get to stay fundamentally the same, but it plays a role in bolstering Italy’s economy, too.
