Versace's on the (bidding) floor. Wall Street Journal reports that Michael Kors Holdings LTD—which already owns Jimmy Choo, by the way—is set to buy the Italian luxury company for approximately US$2.35 billion. Sources state that the deal should be closed sometime this week.
It's a move that'll give Michael Kors a foothold in the glitzier realm of fashion. The New York-based brand is best known for classic, preppy sportswear and affordable handbags, so Versace's penchant for all things elaborate and extravagant will make for an interesting paradox.
Should the acquisition be successful, the sale would also mark one of the first attempts by an American fashion company to run a high-profile European label. It just might set the stage for Michael Kors' evolution into a power-playing entity that carries potential to rival star French conglomerates LVMH (Louis Vuitton, Fendi, and Givenchy) and Kering (Gucci, Balenciaga, and Saint Laurent).
We can't wait to see how this pans out!