Michael Kors to acquire Versace
The Hustle reported that US fashion company Michael Kors has agreed to buy Italian brand Versace for US$2.35 billion, positioning the retailer to challenge Europe's big luxury fashion brands. Preluding the Versace deal, Michael Kors also purchased British luxury shoemaker Jimmy Choo last year for US$1.2 billion. The acquisition is one of many in the high fashion space: Luxury Italian suit-maker Ermenegildo Zegna bought American menswear outfit, Thom Browne, last month, and Swiss luxury titan Richemont purchased luxury e-commerce platform Net-a-Porter in May for US$3.3 billion. But, here's the catch, not all investors are convinced Michael Kors can pull off the merger, with the retailer's shares falling more than 9.5% after the deal was announced.