I’m old enough to remember how Gianni Versace’s murder shocked the world and altered the fashion industry permanently. Donatella took her brother’s place at the helm of Versace, and it wasn’t until the early 2000s where people really felt like Donatella was carrying on Gianni’s legacy and simultaneously creating her own vision. She rebuilt the brand and the label continued to dress A-listers and continued to be extremely relevant in a massively shifting fashion world. In 2018, Donatella sold Versace to Capri Holdings, but she remained as creative director of the brand up until March of this year. That’s when she “stepped down” right before Capri Holdings pushed her out. Word on the street was that Donatella was being blamed for Capri’s poor management. What’s worse is the 2018 deal meant that Donatella could never start her own line or design/creative direct again. Well… a month after Donatella was shoved out, Capri Holdings has sold Versace to Prada.
On Thursday, in the biggest luxury deal of the year, Prada announced it was buying Versace for 1.25 billion euros ($1.38 billion) from Capri Holdings, a beleaguered New York group that at one point styled itself as the American answer to the great fashion groups of France.
The deal is a sign of faith in the continued value of Made in Italy at a time when the financial markets are in chaos because of President Trump’s whipsawing tariff policies. And it marks the end of Capri’s attempt to create an American luxury group to rival LVMH and Kering, while signaling an attempt by Prada to create an Italian competitor to the powerhouses.
Versace will join Prada and Miu Miu, as well as Luna Rossa, the America’s Cup sailing team, and the pastry brand Marchesi as part of the Prada Group, creating a “best in class” mosaic of Italian savoir-faire. (The group also includes the footwear brands Car Shoe and Church’s.) It also gives the Prada Group’s fashion holding critical mass, adding a ready-to-wear brand with a notably different identity to those of Miu Miu and Prada — as well as one that is not dependent on the designer Miuccia Prada — to the mix.
In a news release, Andrea Guerra, Prada Group’s chief executive, said the acquisition would add, “a new dimension, different and complementary,” to the Group. “Versace has huge potential,” he added, while noting, “the journey will be long.”
Prada plans to fund the acquisition with debt, borrowing more than one billion euros. The plan was approved by both companies’ boards and they expect the deal to close in the second half of the year, pending approval by regulators.
The past year has seen so much turnover in lead designers and creative directors at major fashion houses. Versace is one of the few brands with massive, global name-recognition and a certain authentic “look” and vibe. I wonder if there could be a plan to reinstall Donatella in some way. Clearly, Donatella would not be interested in kind of managerial position and they don’t want her near the running of the business. But it would be stupid to continue to shut her out of Versace completely. They could easily bring in fresh young talent to the house but rehire Dontella as some kind of muse/creative ambassador.
Photos courtesy of Getty, Avalon Red.
