Prada Teams Up with Citi Group
Prada, with Citi Group as its advisor, is reportedly exploring the acquisition of Versace from Capri Holdings. Prada has emerged as one of the leading contenders in the potential sale of the iconic luxury fashion house.
Versace’s Legacy
Versace was founded in Milan in 1978 by the late Gianni Versace. The luxury brand is renowned globally for its bold, opulent prints and the famous Medusa motif. Donatella Versace, Gianni’s sister, presently is the brand’s Creative Director. The brand is owned by Capri Holdings, which recently enlisted Barclays to assess strategic options, including the sale of Versace and Jimmy Choo, as reported by Reuters.
Financial Challenges and Opportunities
The move to sell Versace comes amid financial challenges for Capri Holdings, which has reported consecutive losses for the brand over the first two quarters of the fiscal year. Versace’s revenue declined, with its operating margin falling from 13.7% to 2.4%.
Prada’s Strong Financial Position
In contrast, Prada has shown strong financial performance, recording an 18% increase in sales. This financial stability positions Prada as a serious contender in the potential acquisition.
Sale Discussions and Recent Developments
The sale discussions follow Tapestry’s recent withdrawal from an 8.5 billion dollar acquisition deal with Capri Holdings, leaving the luxury group exploring other options for its assets. While neither party has confirmed the potential deal, Capri Holdings’ engagement with Citi Group indicates an active search for suitable buyers for Versace.
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