Michael Kors nearing deal to buy Versace for US$2B

27 September, 2018, 01:06 | Author: Darnell Patrick
  • Versace on verge of sale to Michael Kors

Handbag designer Michael Kors is reportedly closing in on a deal to buy iconic Italian fashion house Versace, as Wall Street Journal reports.

Blackstone Group LP owns 20 percent of Versace, which sells leopard-print sweatshirts for 2,100 euros ($2,470) and 995-euro tartan-covered sneakers.

The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.

The deal would give Michael Kors the ability to "properly compete with Kering's power brand, Gucci", explained Allday, noting that the consolidation in the fashion creates risks of for smaller brands that stay independent "of being left behind" and unable "to afford the exposure" of a bigger company.

The reports of a sale come as Michael Kors has made it clear that it wants to transform itself into a house of luxury brands, starting a year ago with its acquisition of Jimmy Choo, made famous for its "Sex and the City" stilettos. And it comes as the Michael Kors business still hasn't been turned around, despite some progress made.

Versace, known for its bold and glamorous designs, is one of a clutch of family-owned Italian brands seen as attractive targets at a time when the luxury industry is benefiting from strong demand from China.

French fashion houses including Paris-based Kering PRTP.PA were among those holding talks with the Versace family, the sources said, but considered the price too expensive.

Neither Versace nor Kors responded to a request for comment.

Sources told the newspaper the official announcement from Milan would come Tuesday, when creative director Donatella Versace has scheduled a staff meeting, but that confirmation of the news could come within hours. The company had been working toward an initial public offering, though market conditions haven't allowed it to move ahead. The Versace family is reported to want to continue its involvement.

LVMH, PVH Corp. and Tapestry also looked at Versace in recent months, according to a report on Sunday by Women's Wear Daily.

As spotted by the Bloomberg reporter Kim Bhasin, Donatella Versace's Instagram has been bombarded with comments begging her to call off the deal.

Last year it returned to a net profit of just under 15 million euros compared with a net loss of 7.9 million euros the previous year.

Versace was founded by Gianni Versace in 1978.

Models present creations at the Versace show during Milan Fashion Week Spring 2019 in Milan, Italy, September 21, 2018.



Donald Trump blasts second Kavanaugh accuser as a ‘mess’ and ‘inebriated’
Media captionPresident Trump: " The second accuser doesn't even know, she thinks maybe it could have been him, maybe not". The agreement for Ford to testify came just hours before the New Yorker magazine published the Ramirez article.

Kavanaugh says he won't 'be intimidated into withdrawing'
She said that Judge did not name others involved in the incident, and she has no knowledge that Kavanaugh participated. Trump broke his silence to cast doubt on Ford's story Friday in ways Republicans had been carefully trying to avoid.

Golf Fans Rejoice As Tiger Woods Ends Drought, Wins Tour Championship
Without that birdie, Woods would have won his third FedEx Cup title after starting at No. 20 going into the Tour Championship. Not only did it end Woods' five-year wait, it moved the 14-time major champion within two victories of Snead's record.

US sanctions China for buying Russian fighter jets, missiles
The US official said Washington had spent "an enormous amount of time" seeking to discourage prospective buyers of Russian arms. All of them - defense related firms, officers of the GRU military intelligence agency, and people associated with the St.

Bill Nelson: FBI needs to investigate Brett Kavanaugh sex accusations
Democrats contend that Republicans' refusal to let the FBI investigate suggests they are not interested in getting to the truth. They fear that without a shared set of facts, Republicans would simply move quickly after the testimony to confirm Kavanaugh.

Amazon Prepping 8 New Alexa Products
If the new devices are made and sold by Amazon, they would be in direct competition with similar devices made by Sonos and Garmin. And in its most recent earnings report, Amazon CEO Jeff Bezos hinted at his ambition for making Alexa more widely used.

Washington scrambles over Kavanaugh allegations
Joe Donnelly of Indiana, Heidi Heitkamp of North Dakota and Joe Manchin III of West Virginia, also called for slowing the process. Ford described Kavanaugh and Mark Judge , a second boy in the room, as " stumbling drunk " in her interview with the Post .

Fmr Senate Attorneys Blast Kavanaugh for ‘Pattern of Deceptive Answers’
A potential "no" vote from Flake would complicate the judge's prospects because Republicans control the committee by just 11-10. White House adviser Kellyanne Conway told reporters earlier Monday Ford "should not be insulted and she should not be ignored".

Democrats Have Ensured Brett Kavanaugh Will Never Get A Fair Hearing
Ford told the Post that she recalled being at a party with Kavanaugh in the summer of 1982, when she was 15 and Kavanaugh was 17. According to Washington Post reporter Seung Min Kim , Foy said Sunday that the vote had not been rescheduled.

FDA takes 'ancient action' on formative years e-cigarette 'epidemic'
In his remarks, Gottlieb criticized e-cigarette manufacturers for failing to address teen use of their products. It has warned that most such products contain nicotine, which is addictive and can affect brain development.