It’s official, Michael Kors has bought the Italian luxury fashion company from Donatella, Versace. This deal results in America having its first global luxury brand. Michael Kors bought Versace for $2.1 billion and is renaming the company to Capri Holdings.
[media-credit name=”Michael Kors Press Kit” align=”alignright” width=”392″][/media-credit]The name Capri Holdings took inspiration from an iconic, glamorous and luxury destination island, the company said. “It will retain the Michael Kors name.”
Now that Michael Kors has closed the deal, it is expecting to compete with other fashion rival groups like Louis Vuitton. Not only did the company buy Versace last week, but last year they bought Jimmy Choo, the London based shoe making company, for $1.2 billion.
“I think it’s interesting that [Michael]Kors bought Versace because they are two separate brands,” freshman history major Heather Hartline said. “I think Kors’ will combine his ideas into Versace.”
Michael Kors has always had an eye on luxury fashion and it sparked an interest in 1997, when Louis Vuitton invested in the company. Kors himself was hired to work for them, but left in 2004 to focus on his own brand.
“In 2004, he launched his brand that included perfume, handbags and watches. By 2014, Kors became a billionaire,” according to Harper’s Bazaar.
“The acquisition of Versace is an important milestone for our group,” chairman and CEO of Michael Kors, John Idol said in a statement.
The company plans to open over 100 new Versace stores. “Kors wants to improve and expand its accessories and footwear along with increasing European business while reducing business in America.” CBS News stated.
“I haven’t thought much about it, I don’t know if it will make it more accessible to everyday people but that would be a good idea,” junior marketing major Victoria Sweet said.
Donatella isn’t going anywhere, as she still holds 20 percent stake in the business. She will be on board in the company as creative director and will continue to give new ideas.
After her brother Gianni Versace was murdered outside of his home in Miami in 1997, she has taken over the company and has been the face of Versace for the past 20 years. With the help from her other brother Santo Versace and daughter Allegra, she presented her latest fashion for spring and summer during Milan Fashion week.
“You all know how I love the interaction that I have with all you here. First of all, I wanted to let you know that I am not going anywhere, so for those who wanted to get rid of me it ain’t happening!” Donatella Versace said on Instagram. “I also wanted to reassure you that Versace will remain Italian, made in Italy and that it will keep its glamour, daring and inclusive attitude.”
Selling the label opens up new ways for it to reach its full potential. The passion for fashion and luxury will still always be in Donatella’s heart, but for now she will have more time to focus on something other than fashion. She had pushed her family away since she made the choice to represent her brother’s label in the best way she could, but after a while of running it all, the responsibility was becoming much harder.
“I think it’s an awful idea for Versace, personally I view Michael Kors as mid-tier luxury brand and Versace is super high end and luxurious,” senior biomedical marketing major Claire Mercado said. “I feel Donatella has some type of relationship with Michael Kors and they both have enough respect for each other where they can work on things together.”
Kors and Versace are both known for their attraction and charisma at different spectrums and aspects in the fashion world. But this could benefit both their companies for the better or worse.
“This is just the beginning of an exciting, new adventure,” Versace said on Instagram. “I hope you will live it together with me!”
The news has caused waves in the fashion world. The deal had been a big controversy and eye opener for many finding out about this but we can only wait to see what Kors has in store for us with the new ideas and thoughts he will give.