PRADA BUYS VERSACE

Fashion house Prada has acquired one of its rivals, Versace.

The $1.38 billion deal between Versace and Prada’s former owner, Capri Holdings, was confirmed by Prada’s marketing director and a family member controlling Prada, Lorenzo Bertelli.

“There are no overlaps in terms of creativity, in terms of customers.”

Versace is known for its bold prints and designs, while Prada opts for a minimalist look and more monochrome designs.

In a statement, Patrizio Bertelli, Prada’s chairman, said that the company and the controlling family are ready for the new era.

“We will provide (Versace) with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”

Versace has been operating at a loss for the last couple of years, and after Donatella Versace announced that she was stepping down on 13 March, speculation grew that a sale agreement with a new owner might be in the pipeline.

Donatella, who was the chief creative officer of the brand, is the sister of Gianna, who founded the brand in 1978.

The luxury industry in Europe is led by French companies, especially the biggest conglomerate LVMH, which owns the Louis Vuitton, Christian Dio, Moet and Chandon, and Hennesy.

With Prada and Versace working under one umbrella, the Italian landscape is becoming bigger. Something the Italian economy is excited about.

Image credit: Hindustan Times