Michael Kors to Acquire Italian Fashion Brand Versace

US fashion group Michael Kors Holdings Limited is buying Italian luxury brand Versace [ver-SAH-cheh]. Versace is a 40-year-old brand best known for its glamorous and high-end ready-to-wear clothes. Siblings Santo Versace and Donatella Versace have been at the helm of the company since 1997. Under Michael Kors’ management, Donatella will maintain her role as Versace’s creative director. Michael Kors will be buying the iconic Italian brand at $2.12 billion. Once the deal is closed, Michael Kors will rename itself Capri Holdings Limited. The acquisition is part of the American label’s endeavor to hold several international brands. Meanwhile, the acquisition is meant to help Versace boost its revenue and scope. Michael Kors aims to raise Versace’s sales to $2 billion yearly while also increasing the Italian fashion house’s outlets to 300 stores globally. The US company also announced upcoming changes to Versace’s operations. These include placing stronger emphasis on accessories and footwear and opening an online shop. These strategies seem to emulate the changes previously done by Italian brand Gucci, which led to a rise in its sales. Last year, Gucci strengthened its online shops and started focusing on selling upscale streetwear for younger consumers. Donatella Versace said in an interview that she is very excited about the deal. However, fans of the brand were not as delighted. When rumors of the sale circulated prior to the confirmation of the contract, Versace fans flooded Donatella’s Instagram with comments begging her to cancel the sale. Some also took to Twitter to express their outrage, with many saying that the deal with Michael Kors would ruin Versace’s reputation and prestige.