Prada's Big Bet on Versace: Luxury Fashion Giant Snatches Italian Icon for $1.4 Billion
In a move that sends shockwaves through the luxury fashion industry, the Prada Group has announced its acquisition of Milan-based fashion powerhouse Versace in a deal worth nearly $1.4 billion. The acquisition marks a significant bet by Prada on revitalizing the Versace brand, which had been struggling to regain its footing following a tumultuous period under the Capri Holdings umbrella.
Under the new ownership, Versace will be spearheaded by Lorenzo Bertelli, the 47-year-old son of co-creative director Miuccia Prada and long-time Prada Group chairman Patrizio Bertelli. As executive chairman, CEO, and sustainability chief, Bertelli will oversee a major overhaul at the iconic brand. While he has ruled out swift executive changes, Bertelli acknowledged that Versace had been underperforming in recent years.
The acquisition comes after Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018. However, the brand's fortunes have been hindered by its struggle to position itself in an era of "quiet luxury." With the Prada Group on board, however, Versace is poised to benefit from the resources and expertise of one of the world's most respected fashion houses.
Prada has long seen significant growth potential in the Versace brand, with analysts predicting that it will contribute 13% to the group's pro-forma revenues. The acquisition also marks a major coup for Prada Group, which is committed to integrating crosstown rival Versace into its Italian manufacturing system.
The Prada Group has already begun preparations to incorporate Versace into its supply chain, investing €60 million this year in its leather goods factory network and expanding production capacity at other factories. This includes the establishment of a new leather goods factory near Siena and a new knitwear factory near Perugia, as well as an expansion of Prada's Church's footwear factory in Britain.
As part of its efforts to revitalize Versace, Prada has also invested heavily in its supply chain, including the training of 570 artisans over the past 25 years through its in-house academy. With the acquisition complete, Bertelli and his team are poised to put their stamp on the brand and restore it to its former glory as one of the world's top fashion destinations.
In a move that sends shockwaves through the luxury fashion industry, the Prada Group has announced its acquisition of Milan-based fashion powerhouse Versace in a deal worth nearly $1.4 billion. The acquisition marks a significant bet by Prada on revitalizing the Versace brand, which had been struggling to regain its footing following a tumultuous period under the Capri Holdings umbrella.
Under the new ownership, Versace will be spearheaded by Lorenzo Bertelli, the 47-year-old son of co-creative director Miuccia Prada and long-time Prada Group chairman Patrizio Bertelli. As executive chairman, CEO, and sustainability chief, Bertelli will oversee a major overhaul at the iconic brand. While he has ruled out swift executive changes, Bertelli acknowledged that Versace had been underperforming in recent years.
The acquisition comes after Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018. However, the brand's fortunes have been hindered by its struggle to position itself in an era of "quiet luxury." With the Prada Group on board, however, Versace is poised to benefit from the resources and expertise of one of the world's most respected fashion houses.
Prada has long seen significant growth potential in the Versace brand, with analysts predicting that it will contribute 13% to the group's pro-forma revenues. The acquisition also marks a major coup for Prada Group, which is committed to integrating crosstown rival Versace into its Italian manufacturing system.
The Prada Group has already begun preparations to incorporate Versace into its supply chain, investing €60 million this year in its leather goods factory network and expanding production capacity at other factories. This includes the establishment of a new leather goods factory near Siena and a new knitwear factory near Perugia, as well as an expansion of Prada's Church's footwear factory in Britain.
As part of its efforts to revitalize Versace, Prada has also invested heavily in its supply chain, including the training of 570 artisans over the past 25 years through its in-house academy. With the acquisition complete, Bertelli and his team are poised to put their stamp on the brand and restore it to its former glory as one of the world's top fashion destinations.
and I gotta say, this is a pretty sweet deal for everyone involved! I mean, think about it - Versace is getting the resources and expertise to boost its brand back up, and Prada is getting another iconic Italian fashion house to add to its portfolio 
. Plus, Lorenzo Bertelli seems like a total boss who's all about revitalizing the brand in a good way 
. And let's not forget about those 570 artisans who've been trained through Prada's academy - that's some serious investment in the community 
they're basically buying a sinking ship. but maybe bertelli knows what he's doing? 
the fashion world is super competitive right now and versace has to step up its game if it wanna compete with brands like hermes or gucci. and what about the "quiet luxury" thing? isnt that just code for "we're not gonna disrupt the status quo"? 
gotta see how lorenzo bertelli pulls it off, hopefully he brings back that old school italian flair 
, prada is taking a huge risk by snatching this iconic brand but at the same time, with their resources and expertise, maybe they can revamp versace into something even more amazing 
, i'm curious to see how lorenzo bertelli will shake things up at versace, he's got some big shoes to fill 
Just heard that there's been a huge rise in ocean plastic pollution this year 
. The amount of plastic waste found in the Great Pacific Garbage Patch has doubled since last year, with over 10 million tons of debris now floating on the surface of the ocean. It's estimated that if current trends continue, there could be more plastic than fish in the ocean by 2050 
.
and let's be real, who wouldn't want to work with one of the most respected fashion houses out there? 
. The fact that Versace will be integrated into Prada's Italian manufacturing system is a genius move – those factories are legendary for quality, and it'll only boost the brand's reputation. Plus, with Prada throwing their weight behind Versace, they're basically guaranteeing its place in the "quiet luxury" movement