Prada has agreed to buy the smaller Italian fashion house, and competitor, Versace. The deal is reportedly worth almost $1.4 billion.
On Thursday (April 10), Prada it purchased the brand for $1.375 billion (€1.25 bn) from its owner, Capri Holdings. Part of the deal was acquiring Versace’s debt and the union creates one of the biggest conglomerates in Italian fashion.
Hip-Hop fans have long held both Prada and Versace in high regard. While the
Prada “America’s Cup” sneaker has been a staple in the wardrobe of affluent (or at least “faking it til they make I”t rappers), the late, great Notorious B.I.G. was known for his
Versace “Medusa” sunglasses. And you have to mention the Migos making a hit called “Versace,” that Drake promptly hopped on, back in 2013.
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“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage,” said Patrizio Bertelli, Prada Group Chairman and Executive Director,
in a statement. “We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”
Back in March, Donatella Versace announced that she was vacating her longtime post as Chief Creative Officer of Versace (she is now its Chief Brand Ambassador), which was founded by her late brother, Gianni.
“Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace,” said John D. Idol, the Company’s Chairman and Chief Executive Officer in a statement. “Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”
See reactions to Prada’s power move in the gallery.
