Fashion giant Prada bought its rival Versace at a knockdown price, bringing two of Italy’s biggest luxury fashion brands under one roof.
The $1.38 billion deal represents a nearly $700 million loss for Versace’s parent company, which bought the designer in 2018, but is struggling with debt and is offloading other brands.
Donatella Versace stepped down in March, nearly 30 years after taking over the company following the murder of her brother Gianni, and sales have slowed, the BBC reported. Prada, meanwhile, wants to boost its portfolio to compete with rivals such as LVMH. The high-end fashion industry is struggling, hit by US tariffs and reduced Chinese demand; a McKinsey report predicts another year of slow growth in 2026.