Iconic Italian design house, Versace is on the verge of selling a percentage of its ownership rights to Michael Kors Holdings LTD in a deal worth around $2 billion.
The glamorous house’s matriarch Donatella Versace and the Versace family currently own 80 percent of the company after selling 20 percent to US private equity group Blackstone in 2014. Reports also indicate that in the closing of the deal with Michael Kors Holding LTD, Blackstone Group will sell off their 20 percent share of holdings to Michael, which will cause an increase in the shares of the company for the Kors Holdings.
The good news for the Versace family is, they will still have a role to play in some capacity on the ins and outs of the company, which they have helmed over its affairs from 1978, 40 years since its establishment.
The buy will double Kors ownership of two highly acclaimed fashion labels as the company bought the luxury shoemaker Jimmy Choo last year for $1.2 billion. Other suitors eyeing the deal include Tiffany & Co. LVMH, PHV Corp. and Tapestry.
No official agreement have been made yet, but an announcement is expected to arrive in the coming days as Creative Director for the Versace company, Donatella Versace is set to call for a staff meeting today to discuss the sale of the company that she and her brother Santo have run since their other brother Gianni’s infamous 1997 murder.
