Luxury fashion house Prada buys biggest rival Versace for…

The fashion industry is abuzz as two major fashion houses have decided to unite. In a big move for the fashion industry, Italian luxury fashion house Prada has sealed a deal and purchased Versace for $1.38 billion. Versace and Prada, these are two of the biggest names in Italy and internationally as well. The Prada Group announced a deal Thursday to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holdings

With widely different fashion aesthetics, the two brands seek to expand and progress. Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss in recent quarters.

Owning Versace, with its bold, baroque-style prints, will bring new customers to Prada, known for its minimalist style.

“There are no overlaps in terms of creativity, in terms of customers,” said Lorenzo Bertelli, marketing director and a member of the family that controls Prada. According to a report by the Associated Press, there are no plans to change the CEO and Miuccia Prada will not be involved in the creative side of Versace, the executives said. Guerra added that the recent creative shakeup at Versace, with Miu Miu head of design Dario Vitale replacing Donatella Versace as creative director effective April 1, had nothing to do with the deal. He called it “an independent, very personal” decision by Vitale.

(With Agency Inputs)

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