Prada eyes Versace in a €1.5bn deal—can the Italian giant revive the fading brand or is it too late?
Prada is in talks to acquire Versace from US-based Capri Holdings in a blockbuster deal that could restore the struggling fashion house to Italian ownership. The acquisition, reportedly nearing €1.5bn (£1.2bn), would mark a significant shift in the luxury market, pitting Prada against industry titan LVMH.
The deal, expected to be finalised this month, follows years of turbulence for Versace under Capri’s ownership. Michael Kors acquired Versace for $2.1bn in 2018, but the brand has since faltered. Recent financial reports show a 15% drop in revenue in late 2024, with projected losses continuing into this year. Capri’s mounting debt and failed $8.5bn merger with Coach-owner Tapestry have only worsened its position.
S&P Global Ratings recently downgraded Capri’s debt, citing financial strain and underperformance. Prada, seizing the opportunity, has completed initial due diligence and gained access to Versace’s latest financials.
A major concern remains Versace’s creative future. Donatella Versace, who took the reins after Gianni Versace’s tragic death in 1997, faces growing speculation about her leadership. If Prada takes over, will she stay, or will the brand see a drastic overhaul?
Meanwhile, Prada’s stock surged 3.5% in Hong Kong following reports of the deal, reflecting investor confidence in the move. But questions linger—can Prada turn Versace around, or is this another doomed luxury gamble?
