Prada Takes Over Rival House Versace For $1.4 Billion: What's Next For The Luxury Fashion House?

In a big move shaking up global luxury today, the Prada Group has officially snapped up Versace in a landmark $1.37 billion deal. After months of whispers, regulatory checks, and industry speculation, one of Italy’s most daring luxury houses has now been folded into the same family as Prada and Miu Miu, a move that could reshape the future of Milanese fashion.

As fashion insiders digest the news, one question is loud and clear: what does this takeover really mean for Versace?

Versace joins Prada group

The acquisition ends Versace's chapter under Capri Holdings, the US-based parent that had steered the brand through the post-pandemic years. According to IANS, Capri confirmed that proceeds from the sale will be used to significantly reduce debt and stabilise the company’s financial footing.

John D. Idol, Chairman and CEO of Capri Holdings, said the transaction would "strengthen our balance sheet and improve long-term flexibility," noting that Capri will now shift focus toward its remaining brands, Michael Kors and Jimmy Choo, with expectations of renewed growth by fiscal 2027.

Versace, meanwhile, has experienced uneven performance since 2022. As per media reports, Capri filings showed the brand struggled to maintain its pre-pandemic surge, with softer retail numbers through early 2025. Prada's acquisition is widely seen as an opportunity to revive that momentum with a sharper strategy and deeper resources.

Prada's big play: Why the house wanted Versace

For Prada Group, absorbing Versace is more than expansion—it’s a bigger move towards creativity and global influence.

Lorenzo Bertelli, who has been spearheading the group's future vision, told Reuters late last year that Prada had been eyeing Versace "for a long time," revealing talks had taken place even during the COVID years.

"When the Capri–Tapestry deal fell apart over antitrust concerns, we moved quickly," he said, as reported by CNN. "It was something that had been in the works for a long time."

Bertelli is reportedly expected to take over as executive chairman of Versace once integration is complete.

What's next for Versace? A new era begins

Founded by Gianni Versace in 1978, the house built its legacy on glamour, sensuality and maximalist Italian craftsmanship. Now, under Prada's umbrella, the brand is positioned for a strategic reboot, reportedly by potentially tapping into stronger operational systems, streamlined distribution, and more disciplined global growth.

Versace's creative direction has already seen a shift. In March, Donatella Versace stepped down after nearly three decades at the helm. The role is now held by Dario Vitale, previously design director at Miu Miu, another clear sign that Prada intends to bring cohesion across its luxury portfolio.

Industry experts believe Prada’s financial stability and long-term view may finally give Versace the runway it needs to reclaim market leadership in high-luxury ready-to-wear.

With Versace stepping into Prada territory, the Italian fashion landscape is gearing up for one of its most intriguing transformations yet.