Prada aims to acquire Versace, according to Reuters.

Capri Holdings has put its subsidiary and fashion house Versace up for sale. Potential buyers for the brand may include Prada.

According to writes Reuters.

Capri is facing challenging times due to a decline in sales within the global luxury sector valued at $400 billion, as wealthy consumers in China are reducing their spending on such goods.

In November 2024, a deal for Tapestry to acquire Capri Holdings for $8.5 billion fell through. Capri's management did not rule out the possibility of selling its brands.

Capri has hired Barclays to explore strategic options, including the sale of its brands – Versace and Jimmy Choo, as reported by Reuters from two individuals familiar with the matter. One source added that private equity firms and competing luxury goods groups are being considered as potential bidders.

One of the interested buyers is the Italian fashion house Prada. It is also possible that the entire Capri Holdings group could be put up for sale.

Bernstein analysts estimate the value of Versace to be between $1.75 billion and $2.19 billion, excluding debt. The brand accounts for one-fifth of Capri's revenue for the fiscal year ending March 30, 2024. Versace's revenue decreased to $1.03 billion from $1.1 billion the previous year, while its operating margin shrank to 2.4% from 13.7%.

Background. Previously, Mind reported that the photo stock Getty Images is acquiring its competitor Shutterstock, with a combined market value of about $3.7 billion.