Prada has reached an agreement to acquire its smaller competitor, Versace, in a deal valued at $1.36bn (£1.06bn). This acquisition aims to consolidate two major Italian luxury fashion brands under one umbrella. Prada Chairman Patrizio Bertelli stated that the company intends to honor Versace’s legacy by celebrating and reinterpreting its bold and timeless aesthetic. The Prada Group already owns several designer labels, including Miu Miu and Church’s. With this acquisition, Prada aims to compete with French luxury conglomerates such as LVMH and Kering. The price agreed upon is lower than the $2.15bn Capri Holdings spent on Versace in 2018. Versace has been operating at a loss due to a global slowdown in luxury fashion demand. Donatella Versace recently stepped down from her creative director role after nearly 30 years, taking on a new position as chief brand ambassador for Versace. Dario Vitale, formerly of Miu Miu, has been appointed as chief creative officer.
— new from BBC
