Versace has been sold to the US clothing and handbags group Michael Kors for $2.1bn (£1.64bn) in the latest example of a family-owned European brand taken under the control of a global fashion conglomerate.
Michael Kors, which last year bought London shoemaker Jimmy Choo for almost £900m, confirmed on Tuesday that it had bought Versace and would fold all three brands into a new company called Capri Holdings – named after the favourite holiday island of wealthy fashionistas.
The deal will cement the fortunes of the heirs of Gianni Versace, the designer who founded the label 40 years ago and built its reputation by dressing some of the world’s most glamorous women, including Princess Diana, Demi Moore and Elizabeth Hurley.
The family owns 80% of the business, with Gianni Versace’s niece Allegra Versace Beck, 32, holding a 40% stake worth €732m (£654m). Allegra’s mother and Gianni’s sister, Donatella Versace, holding 16%, and Gianni’s older brother Santo owning 24%.