Prada is reportedly working with Citi on a potential offer for Versace after it was put up for sale by parent company Capri.
According to Reuters, Italy’s Il Sole 24 Ore first reported that Prada was evaluating a possible bid with Citi. The two companies declined to comment after being contacted by the news agency.
Versace was founded in Milan in 1978 by the late Italian designer Gianni Versace and is now led by his sister Donatella as creative director.
An analyst told Reuters that the brand is valued at between $1.75 billion and $2.19 billion, not including debt. The brand accounted for a fifth of Capri’s revenue in the fiscal year ended March 30, 2024.
Last month, Capri was reportedly working with Barclays to find buyers for both Versace and Jimmy Choo. The rumours came after Tapestry, parent of Coach and Kate Spade, terminated its $8.5 billion merger deal with Capri due to challenges by the Federal Trade Commission.
In its latest financial report, Capri saw a 16.4 per cent decline in sales for the quarter ended September 28, with Versace sales dropping 28.2 per cent.
Jimmy Choo’s sales picked up a little thanks to better wholesale revenue, while Michael Kors sales were down 16 per cent.
