The acquisition of prestigious Italian fashion house Versace by Michael Kors and the name change of the parent company from Michael Kors to Capri Holdings has once again changed the luxury fashion world. This new luxury fashion conglomerate is perhaps the first for the United States, in a world where luxury fashion has been traditionally led by prestigious fashion conglomerates based in France, Italy, Britain, and Switzerland.
Michael Kors has sealed the acquisition of Italian fashion brand Versace for 2.1 billion United States dollars, adding the Versace brand to its multi-brand fashion portfolio and renaming the newly created group as Capri Holdings. But more importantly, by acquiring Versace, the American fashion retailer Michael Kors is building its own fashion conglomerate, now entering the major league, and competing with global luxury fashion companies such as French conglomerate LVMH. In other words, Michael Kors is looking at this as a long term investment in order to strengthen its position in the global luxury fashion market.