Michael Kors or KORS has made a mark in the world of elite European fashion as it been mesmerising people with its wonderful collection every season. Unlike the surprise collections, MK has done something which is sure to leave all fashion enthusiasts spellbound.
On Tuesday, September 25, MK surprised the world by striking a $2.1 billion deal for the Italian brand, Versace. Yes, you read that right. It is confirmed that MK will soon take over Donatella Versace.
The acquisition is very important for MK and following the deal Michael Kors will change its name to Capri Holdings. Michael Kors plans to grow Versace’s sales to $2 billion annually, open more stores, expand its accessories and footwear and improve e-commerce services of the brand.
The US brand has made it clear that Donatella Versace will continue to lead the company’s creative vision. They also said that the decision to buy Versace will help them compete against rival fashion groups like Louis Vuitton owner LVMH (LVMHF) and Tapestry (TPR), the parent of Coach and Kate Spade. This is the second acquisition by MK as last year they bought London-based shoemaker Jimmy Choo for $1.2 billion.
Lead Image Courtesy: The Economic Times