Michael Kors nears to buy Versace for $US2 billion

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In a major fashion industry overhaul, USA accessories brand Michael Kors is tipped to purchase luxury Italian design house Versace for around $2.8 billion AUD, according to a report from Reuters. According to the Wall Street Journal, sales for Gucci were up 45 percent in 2017 from 2016.

The Versace family, which owns 80 per cent of the company, will continue to have a role under any agreement, the people familiar with the situation said.

The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.

One comment reads: "Don't let the rancid oppressive stain of a fashion house known as Michael Kors take away what made Versace great".

Just past year Michael Kors purchased British heel maker Jimmy Choo for $1.2 billion, as the company continues to try and expand its high-end portfolio.

Reacting to the potential sale, Graham Hitchmough, chief operating officer at Bonsey Design, said that the potential sale of Versace to Michael Kors just represents the latest in a wave of consolidation within the fashion industry. But the deal would help Michael Kors compete against larger rivals.

News of the possible acquisition has sparked backlash from consumers, who have urged the brand not to sell to Michael Kors, with many threatening to boycott the brand if the deal goes through.

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Say you're sorry, ' she added. "I just don't understand what he was talking about". Why would you say that?" she said of her discussion with her coach.

Michael Kors didn't respond to a request for comment. A year ago the American company acquired Jimmy Choo for $1.2bn.

While she has since recovered and still runs Versace, the company is only modestly profitable, generating about $18 million in profits on $822 million in sales past year.

Versace had planned to float the company on the stock market but put the plans on hold owing to unfavourable conditions.

Donatella Versace is the brand's creative driver.

LVMH, PVH Corp. and Tapestry also looked at Versace in recent months, according to a report on Sunday by Women's Wear Daily. Serving as the artistic director and vice-president of the group, she has called a staff meeting in Milan for Tuesday.

Models present creations at the Versace show during Milan Fashion Week Spring 2019 in Milan on Friday. In a tribute to Gianni, Donatella Versace brought back the most iconic looks from his collections spanning the 1990s, including silk blouses mixing leopard prints with images of baroque architecture.