Michael Kors In Talks To Acquire Versace

September 24, the American designer fashion company Michael Kors announced that they are in talks to buy Versace for 2.35 billion US dollars.  Kors a is a company primarily known for its hand bags, has been buying up more and more fashion companies.  In 2017 the company bought the British designer brand Jimmy Choo for 1.2 Billion US dollars.  With this purchase Kors hopes to expand its control over the designer market and compete openly with larger French brands. Such as LVHM the massive fashion conglomerate that owns brands such as Louis Vuitton, Fendi, Givenchy, Kering, Gucci, Balenciaga and Saint Laurent.  This deal would make Kors the first American fashion brand capeable of competing with larger European firms. Versace adds a much needed prestigious brand in Kors’ new portfolio. Kors, is not the only fashion company attempting to consolidate. Tapestry the company that owns Coach, has made a string of large purchase like Kate Spade and Stuart Weitzman.

In recent years Kors has seen a decrease in sales tied to them selling their products at cheaper chain stores has hurt their image as a high end fashion brand.  To combat this, they have turned to increasing the quality of their products.  Versace on the other hand has gone through a renaissance in terms of brand recognition.  A new television show launched this past year documenting the assassination of the company founder Gianni Versace. As it stands now both Kors could stand to gain a great deal from this deal and only time will tell if it will pay off.

-William Caterham