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VERSACE

Versace keen to find €250 million investor

Denim, leathers and chains were the look at Versace's Milan Fashion Week show on Friday, as the family-owned brand looks for a possible investor to buy a stake.

Versace keen to find €250 million investor
Designer Donatella Versace during Milan fashion week. Photo: AFP/ Filippo Monteforte

Denim, leathers and chains were the look at Versace's Milan Fashion Week show on Friday, as the family-owned brand looks for a possible investor to buy a stake.

The company this week said it wanted a minority investor to pump finances into the brand and help develop it further.  A source told AFP this week that Versace hopes to select an investor next month to invest around 250 million euros ($335 million) for a stake of 15 to 20 percent.

Italian daily Il Sole 24 Ore said one possible investor for the company, which is still 100-percent family owned, could be Qatar's sovereign wealth fund.

Its collection for the spring/summer 2014 season was characteristically over the top, edgy and verging on kitsch.

"Twenty-first century Versace is boldness, energy, rock and casual luxury," it said in a note after its catwalk show in Milan's fashion district.

Designer Donatella Versace was going for a mix of the glamour associated with the brand and a more "street style".

"I wanted everything to look casual but with a street toughness," she said.

Fluorescent colours gave the collection a youthful look, along with high-cut leather jackets and skinny jeans.

There was even a black T-shirt with a heavy metal theme in the collection, which Donatella herself wore when she came onto the catwalk after the show.

The use of metal mesh was particularly striking in various forms — as a neck scarf, a pocket and as part of a dress.

Brand founder Gianni Versace was murdered in 1997 outside his Miami Beach mansion by spree killer Andrew Cunanan.

The Mediterranean-style seaside villa was sold at auction earlier this month for $41.5 million (30.7 million euros).
 

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VERSACE

Michael Kors bags Italy’s Versace for €1.8 billion

Fashion house Michael Kors announced on Tuesday it had agreed to buy Italian luxury giant Versace, signalling an intention to move deeper into the international big league after snapping up shoemaker to the stars Jimmy Choo last year.

Michael Kors bags Italy's Versace for €1.8 billion
Donatella Versace, who will retain a creative role in the fashion house founded by her brother Gianni. Photo: Patrick Kovarik/AFP

Michael Kors, an iconic label rooted in American and New York fashion but headquartered in London, will pay €1.83 billion ($2.1 billion) for Versace, a statement said.

“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth,” said Michael Kors chief executive John Idol.

“With the full resources of our group, we believe that Versace will grow to over $2.0 billion in revenues,” he added. 

“We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”

Idol said that Donatella Versace, artistic director and vice president of the Italian group, would stay on to lead the label's creative vision, saying her “iconic style” was “at the heart of the design aesthetic of Versace”.

Donatella said the takeover was “essential to Versace's long-term success”.

She added in the statement: “We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader.”

Bags, watches and perfume

Michael Kors, best known for its bags, watches and perfume, said it planned to grow the number of Versace stores worldwide by 50 percent to 300, and expand accessories and footwear from 35 to 60 percent of revenues.

The deal is the latest push by Michael Kors into high-end luxury after it bought British shoemaker Jimmy Choo in 2017 for $1.4 billion.

It is seen also as positioning Michael Kors more fully as a competitor to Paris-based LVMH and Kering and the Swiss company Richemont among global heavyweights in luxury across various product lines, analysts said.

Shares in Michael Kors were down 0.4 percent at $66.43 in early trading in New York on Tuesday.

Michael Kors said the acquisition of Versace was expected to help grow its group's revenues to $8.0 billion in the long-term, and diversify its geographic portfolio, pushing further into Asian markets.

Capri Holdings Limited is the new name to be adopted by Michael Kors Holdings Limited upon the closing of the acquisition, inspired by the Italian island in the Bay of Naples that has long attracted the international jet-set.

Versace was the brainchild of Gianni Versace, who was born in Calabria to a dressmaker mother and presented his first signature collection in 1978, with his brother Santo taking care of the label's business arm.

The designer, whose bold designs were embraced by Madonna and other mega-celebrities, was assassinated in 1997 by luxury-obsessed male prostitute Andrew Cunanan in Miami.

Expansion into Asia

Twenty percent of Versace, known for its Medusa head logo, was bought by US private equity group Blackstone in 2014, and the family owns the rest.

Versace chief executive Jonathan Akeroyd, who is also staying on, said Tuesday that since joining the company two years ago, “focus has been on leveraging the company's heritage and strong brand recognition worldwide”, in turn helping “to experience significant growth in all regions”.

Launched in 1981, Michael Kors is named after its US founder, the New York designer with an avid celebrity following who has dressed the likes of Melania Trump and Michelle Obama.

The 59-year-old Long Island-born self-made tycoon is still creative director and the company has been through highs and lows, forced to file for bankruptcy protection in 1993, but able to restructure with an initial investment by LVMH before going back on the New York Stock Exchange in 2011.

Neil Saunders, managing director of GlobalData Retail, said the deal and name change signalled the group's intention to become a luxury powerhouse, and would give the business a better international reach, particularly in Europe and Asia.

But he warned it would “absorb both time and money” to position Versace, however iconic and high-profile, on track for higher growth.

“Capri Holdings now needs to find a way of leveraging all of its brand assets to make the business worth more than just the sum of its individual parts,” he said.

READ ALSO: The Versace story: After its founder's murder, how the luxury brand rediscovered its soul


Photo: Joel Saget/AFP