Versace’s owner SOLD for $8.5bn

Versace’s parent company Capri Holdings is owned by Tapestry now, another high-end fashion company for $8.5 Bn.

High-end labels like Coach are among the Tapestry-owned companies, while Capri Holdings also owns Michael Kors and Jimmy Choo.

Joanne Crevoiserat, the CEO of Tapestry, claimed that the agreement "creates a new powerful global luxury house."

Analysts predicted it would create a challenger to challenge the significant European fashion players.

Apparel analyst at the analytics company GlobalData, Louise Deglise-Favre, told the BBC, "It's creating a major American fashion conglomerate, especially in the premium fashion space."

"It's not as big as the likes of European giants such as LVMH and Kering, but even so it's definitely giving its brands more of a leg to stand on," she added.

Versace has come to represent Italian elegance all across the world. Yet, some consumers consider brands like Kate Spade and Michael Kors to be more accessible because their smaller accessories often start at approximately £100.

The combination of companies with offers at a comparable price point, including Coach, which has previously published collaborations intended towards younger buyers with pop artists like Selena Gomez, according to Ms Deglise-Favre, will boost Tapestry's position in this market.

She did, however, issue a warning that Michael Kors, which has endured years of subpar performance, is also being passed on to Tapestry.

"It will have a definite challenge with that," she said.

However, Tapestry has previously succeeded in revitalising failing brands, including as Kate Spade, which it took up in 2017.