«The Versace brand has enormous potential. Our advisors are selecting an investor who will enter with a minority stake with a capital increase. We don't sell. But small is neither beautiful nor convenient: you have to grow up». These are the words of Donatella Versace in a testimony given two days ago at the third Master in luxury and fashion management of the Sole 24 Ore. And in fact, within a few days, you let Reuters know, the interlocutors with whom the historic Italian brand Versace will continue talks will be defined with a view to entering the capital of a new entity with a minority stake.
The name most likely in the running for a stake in the fashion house is Bahrain-based Investcorp. The company had already had Gucci in its portfolio from 1993 to 1996 and has never hidden a predilection for fashion and brands. Last January, interviewed by Reuters, Hazem Ben-Gacem, head of corporate investments in Europe at Investcorp, indicated fashion and retail as potential investment targets in Italy.
Among those interested is also the Fondo Strategico Italiano (FSI), described by some sources as very determined on the operation. The fund led by Maurizio Tamagnini operates on its own and not through IQ Made in Italy, the joint venture with Qatar Holding.
There will not be a sale of shares by the family, but the financial and non-industrial partner will enter by taking over a 15-20% stake through a reserved capital increase. We recall that the Versace company (408,7 million revenues in 2012, with an Ebitda of 44,5 million) is controlled by Donatella Versace's daughter, Allegra Versace Beck with 50%, by her older brother Santo with 30% and by Donatella herself with 20%. “I clung to my company by my nails – Ms. Versace said in an interview two days ago with Il Sole 24 Ore – a company that went through very difficult moments after the death of my brother Gianni. I made a few mistakes – more than one, I admit – but then I found my voice, I found the strength to fight for what I really think. We will rise again in a big way”. And perhaps the Risorgimento could begin precisely with the entry of new investors who "know how to team up".
The timing of the choice is not rigid and will also depend "on family commitments". In fact, the fashion week will start tomorrow in Milan and the appointments involving the Medusa label could lead to a postponement. 74 fashion shows, 55 presentations and 15 presentations of Milan Fashion Week will keep Mrs. Versace busy, while Banca Imi and Goldman Sachs will continue to search for a partner.
