Prada Eyes Acquisition of Iconic Versace Amidst Luxury Market Shifts

Italian fashion powerhouse Prada is contemplating purchasing the iconic Versace brand from U.S. Capri Holdings. With Citi advising Prada and Barclays tasked with finding buyers for Capri, the deal attracts attention from fashion and equity groups. The sale aims to support a turnaround plan for Michael Kors.

Prada could soon become the new owner of Versace, according to a report by Italy's Il Sole 24 Ore. The renowned Italian fashion house is in talks to acquire Versace from U.S.-based Capri Holdings, a move coordinated by Citi as their advisor.

As Capri Holdings seeks potential buyers through Barclays, numerous fashion groups and private equity firms are also eyeing Versace. Despite speculations, Prada has refrained from commenting on any potential acquisition.

The development comes as Capri Holdings struggles with a decline in revenue due to missed execution in various brands amid a global luxury market slowdown, steering focus on revitalizing its Michael Kors line. This struggle may necessitate selling some of its luxury brands, including Versace and Jimmy Choo.

(With inputs from agencies.)