American fashion brand Michael Kors to buy Italy’s Versace for a whopping 2 billion dollars
In what can be said to be a major move for Michael Kors, the American fashion brand is all set to buy famous Italian luxury brand Versace for a whopping 2 billion dollars. The brand which is known for its signature leather handbags is on a mission to make its presence felt across all fashion areas, and especially more luxury labels, after they bought Jimmy Choo for 1.2 billion dollars in 2017.
Interestingly, Versace, which is known for its glamorous designs is one of the only European bands, making it big as people are tapping Chinese markets for luxury products. According to reports, many of these brands are struggling to appeal to the younger audience with the changing times, as their products and designs aren’t refreshing to them. However, with Michael Kors getting a lot more under their umbrella, as they expand to brands which go beyond bags and into shoes and accessories.
Earlier, US private equity group Blackstone bought a 20 per cent stake in Versace in 2014 to help overseas expansion, however, it did not work well for them. The result was a possible sale which led to the buy by Michael Kors.