Prada to buy rival fashion brand Versace for $1.36bn

Prada, a leading name in the fashion industry, has made a significant move by agreeing to purchase its smaller rival, Versace, for an impressive sum of $1. 36 billion. This acquisition is a strategic effort to merge two of the most recognized designer labels in the world of fashion. The Prada Group, which also owns other luxury brands such as Miu Miu and Church's, announced this exciting news on Thursday. Patrizio Bertelli, the chairman of Prada, expressed his vision for the future of Versace, stating, 'We aim to continue Versace's legacy celebrating and re-interpreting its bold and timeless aesthetic. ' This indicates that Prada intends to honor Versace's unique style while also infusing it with new ideas and creativity. By bringing Versace into the fold, Prada is positioning itself to create a multi-billion dollar luxury fashion group that can effectively compete with major French fashion conglomerates like LVMH and Kering. The discussions regarding the acquisition of Versace began back in February, and the price that Prada has agreed to pay is notably lower than the $2. 15 billion that Capri Holdings, the previous owner, spent to acquire Versace in 2018. This new deal also includes the debts that Versace has accumulated, which is significant given that the brand has been facing financial challenges due to a decline in demand for luxury fashion items globally. Capri Holdings, which also owns other well-known brands such as Jimmy Choo and Michael Kors, has been navigating a tough market. Mr. Bertelli is optimistic about the future of Versace under the Prada Group, stating that it will provide the brand with 'a strong platform' for growth. He believes that Versace has immense potential, but acknowledges that the journey ahead will require 'disciplined execution and patience. ' In a notable change, Donatella Versace, who has been the creative director of the brand for nearly three decades, stepped down from her role in March. She has been a significant figure in the brand since taking over after the tragic murder of her brother, Gianni. Now, at the age of 69, she will take on a new role as the chief brand ambassador for Versace, while Dario Vitale, a former design and image director at Miu Miu, will step in as the new chief creative officer. This transition marks a new chapter for Versace as it joins forces with Prada, and the fashion world is eager to see how this partnership will unfold.