Versace post Versace

In 2018, the acquisition of Versace by Capri Holdings made headlines. Now, it has been revealed that Prada is bringing the Italian brand back. For €1.25 billion, Prada has secured the brand.

But who is behind the brand’s success?

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The History of the Family & Brand

• 1944 – Santo Versace is born on December 16th in Reggio Calabria, southern Italy.

• 1946 – Gianni Versace is born on December 2nd in Reggio Calabria, southern Italy.

• 1955 – Donatella Versace is born on May 2nd in Reggio Calabria, southern Italy. Her mother ran a tailoring shop with 45 seamstresses and was considered one of the best in her field. This early exposure to fabrics and clothing significantly influenced Gianni’s creative development.

• 1972 – Gianni Versace leaves his southern Italian hometown and moves to Milan, a city that had already made a name for itself as a fashion capital, largely thanks to the work of Giorgio Armani. In Milan, Gianni works for three fashion brands (Callaghan, Complice, and Genny), where he begins to build his reputation. Even then, he dreams of creating his own brand.

• 1978 – The Versace brand is founded in Milan by the three siblings. The same year, their mother passes away. The company’s success comes surprisingly quickly, as Gianni’s sense of colors and patterns brings a fresh breeze to the Milanese fashion scene.

• 1980s – Gianni and Donatella share a very close relationship. She is not just his muse but also his sister and, above all, a woman who provides him with valuable input. The two even live together, which works well until partners come into play.

• 1982 – Gianni starts a relationship with Antonio d’Amico, which Donatella disapproves of.

• 1983 – Donatella marries Paul Beck, an American model and allegedly an ex-lover of Gianni. It is unclear how Gianni feels about this relationship. They have two children together: Allegra (born in 1986) and Daniel (born in 1990).

• 1988 – From here, things get complicated in the Versace family. Gianni sets very high standards and expectations for his employees, leading to tensions within the staff. At the same time, rumors about mafia connections begin to circulate.

• 1989 – Versace reaches the height of his creative powers. Atelier Versace aims to establish the brand within the haute couture landscape, competing with giants like Chanel and attempting to conquer the French market.

  

  

  

  

• 1991 – In George Michael’s music video for Freedom, the biggest supermodels of the time make an appearance: Linda Evangelista, Cindy Crawford, Naomi Campbell, and Christy Turlington. The models are hired by Versace for a show in which they sing the song. This collaboration with models and celebrities would later prove essential for Versace’s success.

• 1992 – The Bondage Collection (officially titled: Miss S&M) is presented. For Gianni Versace, sex is a way of celebrating life. He embodies a very free and powerful image of women through his clothes. However, the reviews for the show have been rather mixed, accusing it of objectifying women.

• 1993 – At the same time, the Medusa becomes the brand’s logo.

• 1993 – Large advertising campaigns, such as the one with photographer Richard Avedon for the Spring/Summer 1993 campaign, were widely recognized. This was one of the greatest advantages Milan had over Paris: its deep understanding of the power of major advertising campaigns.

• 1994 – In the 1990s, Versace also became a prominent presence on the red carpets around the world. At the premiere of the film Four Weddings and a Funeral in London, Liz Hurley, the fiancée of Hugh Grant, wore a Versace dress that was held together only by safety pins. The next day, everyone was talking about Versace and Liz Hurley.

• 1990s – At that time, among their clients were Madonna, Cher, Sylvester Stallone, and Lady Di.

At that time, there were a total of 15 sub-brands, such as:

• Versace Atelier for haute couture
• Versus, targeting a younger audience (under the direction of Donatella)
• Versace Jeans Couture
• as well as lines for home, perfume, jewelry, and watches

• 1996 – Gianni is diagnosed with cancer and transfers creative leadership of the house to Donatella. Upon his return, tensions arise. During his absence, Donatella had built a better relationship with the staff and led the company with a steadier hand. Gianni reacts with disappointment and makes it clear that he is still the boss.

Gianni also buys 10% of Santo’s shares, thus owning 50% of the company. At this time, he maintains an extravagant lifestyle, largely financed by the company. The goal of the company is to go public, but a planned purchase of a Picasso painting becomes the final straw, and Santo refuses Gianni’s request.

Angry about this, Gianni names his niece Allegra, whom he adores, as his sole heir.

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• 1997 – On July 15, Gianni Versace is shot in front of his villa in Miami. Rumors quickly circulate that the mafia might have been involved. There is also speculation that a lover could have played a role in the tragedy. These myths and mysteries only fuel the hype surrounding the brand. Gianni’s funeral takes place at the Cathedral of Milan.

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At the reading of the will, there is a major surprise. Originally, Donatella and Santo were meant to inherit Gianni’s shares equally. However, due to a change in the will, all shares go to Allegra. At that time, she is still a minor, so Donatella temporarily holds 70% of the company, making her the majority stakeholder.

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Antonio d’Amico, Gianni’s longtime partner, receives a lump-sum settlement and is let go. There is also a falling out with Santo, who cannot accept the preferential treatment given to Donatella and Allegra.

• 1990s – The work continues, and the fashion world is supportive of Donatella. Many see her as Gianni’s rightful successor. She skillfully uses her connections to celebrities and manages to create one of the most viral moments of the era.

• 2000 – Jennifer Lopez wears the Jungle Dress at the Grammy Awards. The dress goes viral, with people all over the world searching for it online, so much so that Google Image Search is created as a result.

Her first haute couture collection, however, could not match the previous successes. The market still demanded Versace — but it was Gianni, not Donatella, that people longed for.

• 2001 – In her private life, Donatella separates from Paul Beck, and she appears too consumed by her personal grief to properly manage her responsibilities. She falls into an addiction to cosmetic surgery and cocaine.

• 2004 – Elton John intervenes, recognizing the situation, and has Donatella admitted to a clinic in Arizona. At the same time, Allegra comes of age, officially inheriting 50% of Versace, but is struggling with anorexia. Santo withdraws from the company.

After her return, Donatella finds her own voice and style. Her collections are celebrated, and she becomes an icon herself — known for her blonde hair, tanned skin, and numerous cosmetic surgeries.

• 2018 – The Tribute to Gianni Show marks a turning point for Donatella. She brings back the supermodels of the ’90s to the runway. No longer afraid of being compared to her brother, she fully embraces the legacy of the Maison.

• 2018 – Michael Kors acquires the iconic Italian fashion house Versace for around $2.1 billion and establishes the new luxury group Capri Holdings (which also includes Jimmy Choo). The goal: to create an American counterpart to LVMH & Co.

Donatella Versace remains the Creative Director – her style stays intact, but the focus shifts to global growth.

• 2025 – Prada acquires the legendary brand Versace for around €1.25 billion – back in Italian hands. Donatella Versace steps down after over 25 years as Creative Director.

  Her successor: Dario Vitale, who left the house of Versace after just one season.

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• 2026 – Pieter Mulier is appointed the new Creative Director of Versace. Shortly after Prada acquires the label from Capri Holdings, Dario Vitale is dismissed. In February 2026, Mulier leaves Alaïa; a few days later, his assumption of the creative leadership at Versace is officially announced.

• 2026 – The Gianni Versace Retrospective exhibition will take place from June 5 through October 31 at the Musée Maillol in Paris.

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  Rating: 4 out of 5.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

• 2027 – The house is making its return to Paris Haute Couture Week in January. The last Atelier Versace show under Gianni’s direction took place in Paris on 6 July 1997, before Gianni was murdered nine days later.

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Conclusion

The acquisition of Versace by the Prada Group for €1.25 billion marks a significant moment in the fashion world and reflects Prada’s ambitions to further strengthen its position as a leading player in global luxury fashion. In light of the challenging global market, characterized by uncertainties and trade conflicts, Prada was able to acquire Versace at a relatively favorable price. Compared to other luxury brands, Versace was valued at approximately 1.5 times its expected annual revenue, which is well below the industry standard of three to four times revenue.

Prada views the acquisition of Versace as a strategic opportunity to expand its portfolio and reinvigorate the brand. Versace’s bold, baroque style complements Prada’s concept, as both brands target different customer groups and have no direct overlap in their creative directions. Through this acquisition, Prada can reach new audiences and offer an even more diverse range of products. However, this expansion will come with challenges, as Versace has struggled recently to balance its product range, particularly in the luxury handbag and shoe categories, which have underperformed.

Nevertheless, the expertise and experience of the Prada Group, particularly in marketing and production, could play a crucial role in getting Versace back on track. Prada has already demonstrated its ability to stage a remarkable comeback with its sister brand Miu Miu, after the brand initially faced difficulties. Prada’s know-how in brand management and its strategic direction provide a solid foundation to revitalize Versace and elevate the brand to new heights.

Overall, the acquisition of Versace by Prada is not only an expansion of its portfolio but also an opportunity to preserve Versace’s heritage while injecting fresh momentum for the future. The company intends to reposition Versace with a blend of innovation and respect for its history, with the goal of making it a stable and profitable brand in the long term.

This could mark the beginning of an Italian luxury conglomerate in the style of Kering or LVMH, capable of uniting multiple globally recognized brands and sustainably shaping the global luxury market.