Prada buys Versace

Capri Holdings has decided to sell its Versace brand amid financial difficulties caused by declining demand for luxury goods in the global market. Italian fashion house Prada is being considered as one of the interested buyers, Reuters reports.

Capri is facing serious financial problems, particularly after the drop in demand for luxury goods in countries such as China, where reduced spending among affluent consumers is making it difficult to sustain high sales. 

Capri's attempt to sell itself to potential buyer Tapestry for $8.5bn in November 2024 was unsuccessful, and it is now again turning to the option of selling brands such as Versace and Jimmy Choo.

Experts value the Versace brand at between $1.75bn and $2.19bn, despite the decline in the brand's profitability and operating margin.