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A representative for Versace declined to comment on the potential transaction. Michael Kors couldn't immediately be reached. A spokesman for Blackstone had no comment. While talks are advanced, no final agreements have been reached, the people said.
Donatella Versace, pictured in her studio this year, has run the label since her brother was murdered.
Photo: Alessandro Grassani/The New York TimesLondon-based Kors last year snapped up shoemaker Jimmy Choo for about £896 million pounds ($1.61 billion), expanding beyond its namesake brand. Now, it's vying with Coach owner Tapestry to build a US-based multibrand fashion empire along the lines of Paris-based conglomerates LVMH and Kering.
Kors, whose shares are listed in New York, alarmed investors earlier this year when it reported a decline in retail sales under its main brand in the Americas, even as the smaller European and Asian markets fared better. The shares had recovered since then, trading 15 per cent higher for the year through the end of last week, with Choo boosting the latest quarterly results.
But word that a deal is close sent Kors shares down almost 9 per cent to as low as $US66.33 in New York on Monday, the biggest intraday drop since May 30.
Versace, known for its flamboyant style and Medusa-head logo, hired chief executive officer Jonathan Akeroyd in 2016 from Alexander McQueen. The company had been working toward an initial public offering, though market conditions haven't allowed it to move ahead.
Super moment... (from left) Claudia Shiffer, Donatella Versace, Naomi Campbell, Cindy Crawford and Helena Christensen closed Versace's 2018 Spring/Summer show.
Photo: APThe Versace family, which owns 80 per cent of the company, will continue to have a role under any agreement, the people familiar with the situation said. Donatella serves as creative director, while Santo is chairman.
Italian newspaper Corriere della Sera reported earlier that Versace could be sold this week for about $US2 billion, with several groups interested including Kors and Tiffany & Co.
LVMH, PVH Corp. and Tapestry also looked at Versace in recent months, according to a report on Sunday by Women's Wear Daily.
Versace had revenue of €686 million euros and returned to profit in 2017, according to figures provided by the company.
The brand has been at its most prominent in years since a hit show last September at Milan Fashion Week. In a tribute to Gianni, Donatella Versace brought back the most iconic looks from his collections spanning the 1990s, including silk blouses mixing leopard prints with images of baroque architecture. She closed the collection by walking the runway herself, arm-in-arm with 1990s models including Carla Bruni and Cindy Crawford.
Bloomberg