Clothing and accessories brand Michael Kors announced it is buying luxury brand Versace, which was founded by Gianni Versace in 1978, for approximately $2.12 billion on Tuesday.
The announcement came as a shock for Versace fans who felt the two brands were radically different. Michael Kors is an American fashion house known for its affordability in its handbags, jewelry, watches and sportswear. Meanwhile, Versace is an Italian fashion house with high-end, luxury items.
Kors is expected to open 100 new Versace stores and hopes to build Versace’s online shopping presence. There will also be more focus on selling shoes and accessories.
“It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra,” Donatella Versace said in a press release. “I am proud that Versace remains very strong in both fashion and modern culture.”
Michael Kors Holdings Limited will change its name to Capri Holdings Limited. The Versace family will receive an estimated $177 million in the new company.
Donatella Versace will still be on board as creative director. However, Versace fans were devastated by the news.
Why is Donatella selling Versace…. to Michael Kors….
The brand about to go from high end luxury to TJ Maxx & Walmart. pic.twitter.com/kGSbkaJNq6
— BabyBoy 10/5💎 (@Drebae_) September 24, 2018
Gianni Verace would never sign his brand to Michael Kors if he was still living. As a huge Versace fan this bothers me. 2 billion ain’t enough for that brand and to let them take over a legacy smh I’m tight @Versace 😑😑
— David Ball (@king_david_b) September 25, 2018
Gianni Versace didn’t die for his ICONIC brand to be sold to some cheap & tacky designer who is the epitome of locals knowledge on designer brands & whos bags u can’t even tell the difference between the fakes they sell in turkey, this is the end of Versace. I’m so disappointed https://t.co/yRu3U6B0Ik
— ً (@cokelagerfeld) September 24, 2018
Gianni Versace rn pic.twitter.com/TMtwudqIPj
— carmen kass stan (@snejanahatesfgs) September 24, 2018
“Michael Kors is reportedly set to buy Versace for $2 billion this week” Gianni Versace sweetie, I’m so sorry
— femme fatale (@eliesaaab) September 24, 2018
I’m really sad about Versace being bought by Michael Kors. I feel like the brand should be perpetrated by Donatella and stayed an Italian house. We all saw what americans have done to european houses when they were given the creative direction and it should’ve been a lesson.
— gmoney ⚡️ (@SahelianBeaauty) September 25, 2018