MILAN (Reuters) – Italy’s Prada is among potential buyers considering a takeover of fashion group Versace, Il Sole 24ore reported on Friday, and Capri Holdings has Versace For Sale.
In November, Coach owner Tapestry abandoned its $8.5 billion deal to acquire Michael Kors owner Capri.
Capri executives have not ruled out selling their brands after a deal to create a US luxury goods group fell through.
Two people with direct knowledge of the matter told Reuters that Capri hired Barclays to consider strategic options, including selling its Versace and Jimmy Choo brands.
One person said the entire Capri Holdings group could also be sold.
Prada is reviewing documents with Citi, the report said. Citigroup has worked with Prada on a dual-listing project in the past, but it was later shelved.
Prada declined to comment when contacted by Reuters. Citi could not immediately be reached for comment. Prada’s Hong Kong-listed shares closed down 0.4% on Friday.
Versace, founded in Milan in 1978 by the late Italian designer Gianni Versace and still led by sister Donatella as creative director, is known for its bold, gorgeous prints, including the iconic Medusa pattern.
Prada, whose rigorous, intellectual style bears the imprint of creative director Miuccia Prada, has been resisting the industry downturn, with third-quarter sales up 18% at constant exchange rates.
Versace accounted for a fifth of Capri’s revenue in the year ended March 30, 2024, or $1 billion of the group’s total revenue of $5.2 billion, compared with $5.6 billion the previous year.
In November, Capri reported a larger-than-expected drop in quarterly revenue, citing execution errors and slowing global demand for luxury goods.
(Reporting by Elisa Anzolin and Sara Rossi; Writing by Valentina Za; Editing by Elaine Hardcastle)
