Popular luxury brand, Prada is set to buy off their rival company, Versace.
This is coming weeks after founder, Donatella Versace decided to step down from her brand after 25 years of being the creative head.
In a blockbuster deal valued at $1.375 billion, including Versace’s debt. The agreement, announced Thursday, marks a significant consolidation move that brings together two of Italy’s most iconic fashion labels under one umbrella.
The acquisition sees Prada purchasing Versace from Capri Holdings, the U.S.-based parent company that has owned the brand since 2018. While Versace has struggled with profitability in recent quarters, operating at a loss, Prada has managed to defy a broader luxury market slowdown, making this a bold but strategic expansion for the Milan-based brand.
She said:
Donatella praised the Italian group for a great partnership. “Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family,”
She added:
“I am honoured to have the brand in the hands of such a trusted Italian family business and I am ready to support this new era for the brand in any way that I can,”
Fans of both brands have taken to social media to react to this news.
“Prada’s $1.38 billion acquisition of Versace is a bold move, but ask yourself: is this a strategic play or a desperate bid to shore up a waning brand? In luxury, perception is paramount. Watch for market reactions and insider flows—this deal could be more than just fashion.” one wrote.
One Pierce Loftin wrote;
“The future vision for this fashion house is a bit foggy but we know it will have solid oversight! Great deal for @Versace.”
One Kesha wrote; “Only people who give a crap are about 1% of the population who can afford it. Let’s pay $10000.00 for a purse so we can advertise your brand for free. No thanks.”
One Bettinna wrote , “€1.25 billion euros seems so incredibly low for the Versace brand? Versace? Whoa There must be some serious debts and mess for it to be sold for that amount.”
One Xolie wrote, “One thing about the rumours, they will always be true because they did say that Prada is going to buy it. It’s Italian affair”
One RIchie Rich wrote, “Prada needs to revitalize their brand 1st, bunch of their shit became made in China, even the made in Italy, is made by Chinese living in Italy, so much for the old master leather craftsmen Italy used to proudly have, Chinese used to ride bikes in Italy going to work, Now BMW’s”