Prada has bought Versace for $1.4 billion. Can it make its Milan rival ‘interesting again’?
After struggling in the ‘quiet luxury’ era, Versace is in for a reboot as Prada looks to cash in on its ‘untapped growth potential’
The Prada Group closed the purchase of Milan fashion rival Versace in a US$1.4 billion deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada’s “ugly chic” aesthetic and Miu Miu’s youth-driven appeal.
The highly anticipated deal is expected to relaunch Versace’s fortunes following a middling post-pandemic performance as part of the American luxury group Capri.
Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances. Capri, which owns Michael Kors and Jimmy Choo, said the money would be used to pay down debt.
“Today is your day and the day Versace joins the Prada family,” she wrote in a post that also featured a 1996 photo of Gianni Versace with Miuccia Prada. “I am thinking of the smile you would have had on your face.”
Prada heir Lorenzo Bertelli is set to steer Versace’s next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief.