The Italian fashion house Prada SpA is considering the acquisition of the Versace brand, as reported by Il Sole 24 Ore citing sources. According to the Italian newspaper, the feasibility of the deal is being discussed with the investment bank Citigroup Inc., which has been engaged as a consultant, writes Interfax-Kazakhstan.
Since 2018, Versace has been owned by Capri Holdings, which is willing to sell Versace along with its brand Jimmy Choo and has previously instructed Barclays bank to send out a request to potential buyers, as reported by Il Sole.
Last year, a court blocked Capri's acquisition by the American company Tapestry, which owns the Coach, Kate Spade, and Stuart Weitzman brands. A lawsuit to freeze the $8.5 billion deal was filed by the U.S. Federal Trade Commission (FTC), which was concerned about the potential decrease in competition in the so-called "affordable luxury" sector.
Prada is one of the few companies maintaining strong positions amid a global downturn in the luxury goods sector. In the third quarter of last year, its sales increased by 18% thanks to the youth brand Miu Miu, which showed an annual growth rate of 97%.