In September 2018, the CEO of what was then Michael Kors Holdings delivered thrilling news to investors. The company had agreed to acquire the storied Italian fashion house Versace from private equity giant Blackstone in a $2.1 billion blockbuster deal.
The purchase created a multi-brand luxury powerhouse made up of Michael Kors jet-set lifestyle apparel and designer bags, the iconic Jimmy Choo footwear brand, plus the red-carpet glamour of Versace. Donatella Versace herself, who stepped up to lead after her brother Gianni’s tragic death in 1997, was in place as the creative visionary and said she was “excited” about the long-term prospects for the brand her brother founded in Milan in 1978. The nouveau American fashion conglomerate was poised to rival European competitors like Louis Vuitton and Hermès owner LVMH and Gucci owner Kering—with soaring revenues to boot.
