In addition to Versace, Prada Group may also acquire Jimmy Choo

«Prada is always looking for acquisition opportunities,» said Lorenzo Bertelli almost a year ago, marketing director and head of corporate social responsibility of the company founded by his parents, Patrizio and Miuccia Prada. Eleven months after this statement, rumors about the acquisition of Versace and Jimmy Choo by the Prada Group are becoming increasingly persistent. At a time of difficulty for both Kering and LVMH, the Italian giant is once again attempting expansion after twenty years, with the acquisition of the hyper-Italian brand Versace and the London-based footwear company Jimmy Choo. The two brands have been put up for sale by Capri Holdings after the American antitrust authority blocked the group's merger with Tapestry. By selling Versace and Jimmy Choo, Capri Holdings could focus all its efforts on Michael Kors, the flagship brand of the conglomerate, while with the acquisition of the two brands, the Prada Group would both strengthen its company and save an institution of Italian fashion from an uncertain future. It seemed that both the Prada Group and Versace had set in motion all the necessary changes for the acquisition – in mid-March, it was announced that the artistic director replacing Donatella Versace would be Dario Vitale, who until last January served as design director of Miu Miu – but tariffs imposed by the Trump administration may have thrown a wrench into the plans of the two groups. 

Prada Group has been in contact with Capri Holdings for a year, since the American conglomerate put the two brands up for sale. Only last February, however, did the Italian company take pole position to complete the acquisition, according to several sources. Just a few days ago, sources close to the deal told WWD that the transaction will cost the Prada Group 1.5 billion euros and will be completed next week. That was until Trump imposed, last Wednesday, new tariffs on all foreign countries in a move that caused investors to pull out from some of the main international fashion conglomerates including Capri, whose market value dropped by 23.6% to $14.99, and Prada Group, by 4.6% to 51.50 Hong Kong dollars. Trump is trying to rewrite the rules of global trade by initiating a new era of protectionism, a strategy that could have serious repercussions across the fashion sector, including Italian conglomerates and Made in Italy. To discover the future of Versace and Jimmy Choo, we still have to wait for Prada Group and Capri to officially begin negotiations.