Prada Buys Versace For $1.4 Billion In Major Fashion Deal

Italian fashion brand Prada has agreed to buy fellow luxury label Versace in a deal worth $1.4 billion. The move brings two of Italy’s most iconic fashion houses under one umbrella.

The acquisition was announced this week and is expected to be finalised in the second half 2025. Prada plans to finance the deal with a loan of €1.5 billion.

Versace, known for its bold prints and flashy designs, has faced financial challenges in recent years. Sales have declined, and the brand has struggled to keep up with changing trends, favouring simpler, more understated styles.

Capri Holdings, which bought Versace in 2018 for $2.1 billion, has been looking for ways to offload the struggling brand. Donatella Versace recently stepped down as the brand’s creative director as part of the changes.

She has been a key figure in shaping the label’s look since her brother, Gianni Versace, died in 1997. Donatella will remain a brand ambassador, continuing to represent Versace publicly.

Prada, on the other hand, has seen steady growth. Known for its minimalist and refined fashion, the brand appeals to a different customer base. Prada hopes to expand its reach by acquiring Versace and strengthen its influence in the luxury fashion market.

Industry experts feel the deal could help breathe new life into Versace but note that it may take years to turn the brand around fully. Still, Prada’s leadership and experience in the luxury space could offer the support Versace needs to move forward.

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