Prada eyes Versace aquisition to take on Gucci, Dior, Hermes
What's the story
Italian luxury fashion house, Prada, is said to be eyeing the acquisition of Versace from US-based Capri Holdings. This was revealed by Italian financial daily Il Sole 24 Ore.
According to the report, Citi is advising Prada on the potential deal, while Barclays has been hired by Capri Holdings to look for potential buyers.
Market competition
Other fashion groups and private equity funds show interest
The acquisition of Versace has also attracted the attention of other fashion groups and private equity funds. However, the precise valuation for the Italian luxury brand remains under negotiation.
Prada is yet to make any public statement on these reports.
This development comes as Capri Holdings strategically shifts focus to Michael Kors, after a disappointing revenue performance over the past few months.
Business strategy
Capri Holdings's strategic shift amid revenue challenges
Last month, trade journal Women's Wear Daily reported that Capri Holdings, owner of Michael Kors and other fashion brands, was looking for buyers for some of its labels.
These include Versace and luxury shoemaker Jimmy Choo. The move is part of a larger strategy to focus on reviving the Michael Kors brand.
In November, Capri reported a larger-than-anticipated drop in quarterly revenue due to execution missteps across brands and a global slowdown in luxury goods demand.