From banking risk to fashion risk it's a moment. Prada is reportedly considering buying the Versace group from the US Capri Holdings. It reveals Il Sole 24 Ore , according to which Citi is reportedly acting as advisor of Prada, while Capri would have given Barclays the mandate to find potential buyers for the Medusa fashion house.
Versace versus Prada?
Capri Holdings bought Versace in 2018 for 1,83 billion euros. For several weeks now, rumors have been circulating that the American luxury conglomerate, which also owns Michael Kors and other fashion groups, is working to find buyers for some of its brands, including Versace and luxury shoemaker Jimmy Choo, in order to focus on a relaunch plan for Kors. Barclays would therefore have received the mandate to find potential buyers. And among these there could be Prada which, however, asked by the Sun 24 Hours, does not comment.
The group led by Matteo Guerra would not be the only entity interested in purchasing Versace, with others fashion giants and private equity funds ready to enter the field. A year ago, the same operation had also been considered by the holding company of the Agnelli-Elkann family, i.e. Exor, and by Kering.
In this context, it is also necessary to take into account the possible Versace rating, in the event of a sale, in a difficult phase for the luxury market. As mentioned, in fact, Capri Holdings bought Versace five years ago for 1,83 billion euros and in 2023 the group's turnover exceeded 1,1 billion euros. Then came the drop in global demand and the Chinese crisis which heavily impacted the results of the luxury sector, including the Versace group.
