Prada is reportedly exploring the possibility of acquiring Versace, according to a Friday report by Il Sole 24 Ore.
The report claims that Prada has hired Citibank as its advisor to assess the luxury brand’s feasibility.
Reuters contacted Prada for a comment on the matter, but the company declined to provide a statement. On the same day, Prada’s stock dropped by 0.4% on the Hong Kong Stock Exchange.
Capri Holdings, which recently completed its $8.5 billion merger with Tapestry, is reportedly considering selling its luxury brands, Versace and Jimmy Choo.
The merger, which would have brought together Capri’s portfolio with Tapestry — the parent company of Coach — was blocked by antitrust regulations, ultimately causing the deal to collapse.
Following the failed merger, Capri Holdings is now focused on divesting its Versace and Jimmy Choo brands and concentrating on growing its Michael Kors brand.
Capri Holdings reported $5.2 billion in revenue last year, a slight decrease from $5.6 billion in the previous year. Versace accounted for approximately 20% of the company’s total revenue.
Founded in 1978 by Gianni Versace, the iconic fashion brand is known for its bold and opulent designs. The Medusa head logo symbolizes luxury and exclusivity.
Following Gianni Versace’s tragic death in 1997, his sister, Donatella Versace, has led the company as its creative director, continuing to shape its high-fashion legacy.