It is official Michael Kors has purchased Versace for 2.12 billion dollars.
Yes, you saw correct, 2.12 billion dollars which is 2.5 times the brands current revenue, and 22 times its EBITDA (earnings before interest, taxes, depreciation, and amortization). Kors shares their many plans for Versace which includes increasing it’s global footprint in retail, in other words adding 100 more stores to the already established 200. That is not the only plan they have in place, the plan will be expanding footwear and accessories for both men and women.
Many have gasped at this recent news in fear that Versace will not remain the same high end fashion brand many are used to, but it is reassuring the known names usually associated with the brand will be remaining in the respective positions. Jonathan Akeroyd will remain the chief executive of Versace, and Donatella Versace will remain the brands creative director.
In a statement Donatella states that “this is a very exciting moment for Versace”. She also states that due to the stakes both her brother and daughter have in Capri (Michael Kors new holdings name) “demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group”.
This is hopefully conformation that the beloved world-famous Italian fashion house will remain the high-end brand that we all know and love.
Comment down below if you are here for this new purchase or if you think this was a huge mistake!