Luxury Shake-Up
In a landmark deal poised to reshape the global fashion landscape, Prada has officially announced the acquisition of iconic fashion house Versace for a reported $1.36 billion (£1.06 billion).
The announcement, made by the Prada Group on Thursday, marks one of the most significant consolidations in the luxury industry in recent years, uniting two of Italy’s most celebrated fashion brands under one powerful umbrella.
With this strategic move, the Prada Group aims to bolster its influence and market share in the ultra-competitive luxury sector, positioning itself as a formidable rival to industry titans such as LVMH and Kering.
The acquisition also includes Versace’s existing debts, highlighting the brand’s recent financial difficulties amid a global slowdown in demand for high-end fashion.
Patrizio Bertelli, chairman of the Prada Group, emphasized that the acquisition is not just a financial transaction but a continuation of Versace’s bold, glamorous legacy.
He reaffirmed the group’s commitment to preserving the house’s identity while enhancing its creative and commercial potential within Prada’s growing portfolio, which already includes labels such as Miu Miu and Church’s.
Interestingly, the price tag of $1.36 billion is markedly lower than the $2.15 billion paid by Capri Holdings in 2018 when they acquired Versace. The difference reflects the brand’s current challenges, including operational losses and shifting consumer behavior in the luxury space.
Another notable development accompanying the acquisition is the leadership change at Versace. Donatella Versace, who led the creative direction of the brand for nearly 30 years after the tragic death of her brother and founder, Gianni Versace, stepped down in March. Her departure marks the end of an era.
However, she will continue her association with the house as its chief brand ambassador. Dario Vitale, formerly of Miu Miu, has been appointed as the new creative officer, indicating Prada’s intent to infuse fresh energy and vision into the brand.
Prada’s CEO Andrea Guerra expressed confidence in Versace’s future, describing the brand as “an Italian gem” with untapped global potential. While acknowledging that the road ahead may involve challenges, Guerra said the group is ready to invest in Versace’s growth and innovation.
The deal signals a new chapter for both fashion houses, with ambitions to elevate their combined influence in the world of luxury fashion.
