Next step for Donatella?: Could another major designer change shake up the luxury fashion industry in 2025?
Capri Holdings is said to be working with Barclays on the sale of Versace and Jimmy Choo as it focuses on rebuilding Michael Kors, according to reports, sparking further speculation in and around Milan. The contract with Donatella Versace, the Italian brand’s chief creative officer, expires in February, sources said. There has been speculation as to whether she, or Capri, will renew.
When asked for a response, Versace said it does not comment on rumors.
Donatella Versace reached a $2.1 billion deal in 2018 to sell her family’s company to the then-Michael Kors Holdings, which later changed its name to Capri Holdings. She has been at the helm of the brand since her brother Gianni was murdered in 1997. In addition to her work as a designer, Versace has achieved some of the highest popularity on social media and is widely known for her philanthropy and advocacy. About her efforts to uphold the rights of marginalized people and the LGBTQIA+ community. She also helped promote the work of younger designers like Christopher Kane, with whom she designed Versus for many years.
Capri is weighing its options for both Versace and Jimmy Choo, and possibly Michael Kors, after its $8.5 billion acquisition plan by Tapestry was scrapped following antitrust allegations from the U.S. government. It is widely seen as
Versace’s first-half sales fell 22.1% to $420 million, but Capri chairman and chief executive John Idle recently said that the company’s sales “attracted both new and loyal consumers.” The brand could bounce back by revitalizing the company, expanding its product lineup, improving store productivity and restoring customer profitability. Grow your wholesale business. ”
“We believe that by removing too many of Versace’s unique statement pieces, we have diminished the appeal of the brand and products,” the CEO said. “We have also significantly reduced our product offerings for aspirational consumers to enhance our brand.”
But sources say the idol and Donatella Versace have repeatedly clashed over brand strategy, adding to speculation about the designer’s contract renewal.
