Prada among suitors for Versace, newspaper reports

MILAN: Italy’s Prada is among the potential suitors looking at fashion group Versace which Capri Holdings has put up for sale, daily Il Sole 24 ore reported on Friday.

In November, Coach-owner Tapestry abandoned an $8.5 billion deal to buy Michael Kors-owner Capri.

After that deal to create a U.S. luxury conglomerate fell through, Capri executives did not rule out the possibility of a potential sale of its brands.

Capri hired Barclays to look at strategic options including the sale of its Versace and Jimmy Choo brands, two people with direct knowledge of the matter told Reuters.

One person said the entire Capri Holdings group could also be up for sale.

Prada is looking at the file with Citi, the report said. Citi has worked with Prada in the past over a dual-listing project which was put on hold.

Contacted by Reuters, Prada declined to comment. Citi was not immediately available for comment. Prada’s Hong Kong-listed shares closed down 0.4% on Friday.

Versace, founded in Milan in 1978 by late Italian designer Gianni Versace and still led by his sister Donatella as creative director, became known for its bold, opulent prints, including the iconic Medusa motif.

Prada, whose rigorous, intellectual style bears the imprint of creative head Miuccia Prada, has been defying the industry’s downturn with sales up 18% at constant currencies in the third quarter.

Versace accounted for a fifth of Capri’s revenue in the fiscal year through March 30, 2024, or $1 billion out of a total of $5.2 billion for the group, which compared with $5.6 billion the year before.

In November, Capri posted a bigger-than-expected drop in quarterly revenue, hurt by execution missteps and a global slowdown in luxury goods demand.