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After lots of industry buzz, it is official: Michael Kors has purchased Italian luxury brand Versace for 2.12 billion. Since the rumors of the acquisition began, it has caused much distress to fans of Versace. Some are worried that this will mean Versace popping up in stores like Macy’s or Marshalls, eliminating the brands luxury status. Infuse is here to tell you not to worry, things are going to be okay.
Most big name brands today are owned by larger conglomerates such as LVMH or Kering. For example LVMH (Moet Hennessy Louis Vuitton) owns Dior, Celine, and Sephora (to name a few). Kering owns Saint Laurent, Gucci, and Alexander McQueen (again, to name a few). Being owned by a larger company is not exactly new for the fashion industry, this was seen as an opportunity for Michael Kors.
Michael Kors began by buying Jimmy Choo last year for 1.2 billion. Since then the Italian shoe brand has done a major collaboration with Off White, which has only elevated it’s brand presence. I think it’s safe to say that the same will go for Versace. After all, Donatella Versace will still be Creative Director of the brand and seems excited for the future.
With the acquisition of two major Italian luxury brands, Michael Kors Holdings has decided to rename themselves to compete with LVMH, and Kering. It will now be known as Capri Holdings. Pretty Ironic name, Capri is an island in Italy, and the first two companies purchased were Italian. What other Italian brands will follow? Will Capri Holdings become a new competitor for LVMH and Kering?
One thing is for sure, no need to panic. Versace will most likely not change much with this new ownership. Although I am kind of sad to hear I will not be finding Versace at my local Marshalls anytime soon.
Written by Deanna Thayer