Italian luxury brand Prada has agreed to buy Versace for 12,000 crores (around $1.375 billion). The deal, seen as a major moment in Italian fashion, will bring together two famous brands, besides giving Italy more power in a global fashion industry mostly led by French companies. While Prada has been doing well, the demand for luxury items has slowed. Versace, on the other hand, has been facing losses. By joining forces, both brands hope to grow stronger.
Prada’s chairman, Patrizio Bertelli, said they want to carry on Versace’s legacy and help it grow. He added that their past investments and strong industry ties will now support Versace.
Versace was bought by Capri Holdings in 2018 for about ₹17,930 crores ($2.15 billion), so Prada is getting it at a lower price. Versace's sales have fallen recently, with Donatella Versace stepping down as creative head last month. She is now the brand’s chief ambassador, while Dario Vitale from Miu Miu has taken over as the new creative head.
Experts think this deal will help Prada reach more people, but it will take time and effort to turn Versace around. The deal is expected to be completed later this year after approvals. It also shows how fashion companies are teaming up to stay strong during tough times.
