Of all the bets Michael Kors Holdings Ltd. could have made on its quest to become an American house of luxury labels, Versace, and its distinct rococo style, stands out as particularly bold.
Michael Kors is gearing up to purchase Versace for $2 billion. The Medusa head Italian fashion house drew interest from several companies, like Tiffany & Co., LVMH, PVH Corp. and Tapestry have all shown interest in purchasing Versace, but it appears that Kors has reached the most complex negotiations of the bunch. The purchase is still in discussion, and nothing is final. No matter what happens to the Versace brand, the Versace family will be involved within the company regardless.
Michael Kors, whose namesake label is best known for its leather handbags, has made no secret of its ambition to grow its portfolio of high-end brands after buying British stiletto-heel maker Jimmy Choo for $1.2 billion last year.
The move is in line with the U.S. brand’s ambition to aggregate various luxury brands – including fashion, shoes and accessories – under one larger group just like Tapestry, the owner of Coach and Kate Spade.