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Michael Kors nears to buy Versace for $US2 billion

Michael Kors nears to buy Versace for $US2 billion

He is also of the view that the branding of Versace should not falter as a result of the transaction due to its boldness and links to high-fashion.

But word that a deal is close sent Kors shares down nearly 9 per cent to as low as US$66.33 in NY on Monday, the biggest intraday drop since May 30. And it comes as the Michael Kors business still hasn't been turned around, despite some progress made.

Models present creations at the Versace show during Milan Fashion Week Spring 2019 in Milan on Friday.

Marketing has reached out to Versace, Michael Kors and Blackstone for comment.

An Italian newspaper reports that the Versace group is on the verge of announcing its sale to an American company for 2 billion euros, or about $2.4 billion.

Reacting to the potential sale, Graham Hitchmough, chief operating officer at Bonsey Design, said that the potential sale of Versace to Michael Kors just represents the latest in a wave of consolidation within the fashion industry.

London-based Kors past year snapped up shoemaker Jimmy Choo Plc for about £896 million ($1.2 billion), expanding beyond its namesake brand.

Kavanaugh, accuser say they're ready to testify - but how?
Kavanaugh denied the allegations outright. "This is a completely false allegation ", Kavanaugh said in a statement Monday morning. Feinstein said she referred the matter to the Federal Bureau of Investigation and that the woman had requested confidentiality.

French luxury group LVMH, led by billionaire Bernard Arnault, took full control of Christian Dior, in a €12bn deal that reunites the fashion house with the perfume and other Dior brands.LVMH, owns Dior perfumes and beauty after a deal in the 1960s to raise capital for the then-struggling brand.

"They didn't feel the need to invest so much money into another Italian fashion brand".

Blackstone Group LP owns 20 percent of Versace, which sells leopard-print sweatshirts for 2,100 euros ($2,470) and 995-euro tartan-covered sneakers.

Gianni Versace founded his company in 1978 in Milan, building it into an worldwide powerhouse by the time that he was shot at the age of 50 by Andrew Cunanan, a serial killer who murdered at least four other people, in 1997.

Currently, the Versace family - including Donatella Versace, who became the brand's creative director after her brother Gianni's death in 1997 - owns 80% of the company.

He added that the biggest challenge for Versace will be to re-energise the brand and make it relevant to younger generations, particularly in Europe and Asia, while keeping a smooth and productive relationship with the family. CEO Jonathan Akeroyd stated that the group boasted sales of $760 million in 2016 and turnover is expected to exceed by more than a billion in the "short term".

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