Some new names have surfaced in the race to buy Versace — including former Gucci chief Marco Bizzarri, who is looking for a major coup in his new career as an investor, according to sources.
But he has plenty of competition in the process, which has Barclays drumming up buyers for both Versace and Jimmy Choo on behalf of Capri Holdings. The auction is said to have started off with about 15 would-be buyers and it’s now down to half of that, with next round bids expected to be finalized in early February.
Prada Group’s interest has been buzzed about for some time, but among the other players are said to be Bahraini firm Investcorp, private equity company Permira and others. Ferrari-owner Exor was also said to have taken a look, but has apparently decided to pass.
As is typical in the secretive world of high-stakes dealmaking, the parties either did not respond to a WWD query on Sunday or declined to comment on the record.
Each investor is coming to the process with their own strategy and not everyone is bidding on all the assets.
But the focus is on Versace, which is still seen as a top-tier brand with tremendous global appeal even though it’s struggled under Capri.
“Versace is the commodity that people see value in,” said one source familiar with the process.
“The pure financial sponsors are looking at [the assets] and saying, ‘OK, there’s opportunity,’ everyone sees the value in the brand, if you can get it at the right price and the right leverage,” the source said.
The fashion-centric players — including Prada and Bizzarri — could have an advantage with well-developed networks to build the brand. Strategic buyers, like Prada, can also afford to pay more by saving money later with back-office consolidations.
Miuccia Prada and her son, Lorenzo Bertelli, are said to be particularly interested in Versace. While Prada’s involvement was initially viewed skeptically or as simply an opportunity to get a peek at a competitor’s books, the company is said to still be in the running.
“I wouldn’t be surprised if Prada ends up taking both [Versace and Jimmy Choo],” said one source. “They have the means. They have to figure out if they’re going to try to compete with Kering or are they going to focus on Prada and Miu Miu.”
However, many people remain skeptical that Prada will ultimately walk away with the brands.
Sources say the contract of Donatella Versace, chief creative officer of the Italian brand, is up in February. The speculation surrounds whether she — or Capri — will renew it.
Bizzarri and Prada’s interest could support speculation that Dario Vitale, former Miu Miu ready-to-wear design director, might succeed Donatella Versace. A source said Vitale is a thoughtful designer that is not prone to rash decisions and would be mindful of getting involved with the brand while the sale process is underway.
Donatella Versace reached a $2.1 billion deal to sell her family’s company to the-then Michael Kors Holdings in 2018, which subsequently changed its name to Capri. The company is widely seen as considering its options for both Versace and Jimmy Choo — and perhaps even for Michael Kors — since Capri’s $8.5 billion buyout by Tapestry Inc. was dropped following an antitrust challenge from the U.S. government.
Versace’s first-half revenues fell 22.1 percent to $420 million, but Capri chairman and chief executive officer John Idol recently said the brand could bounce back by “engaging and energizing both new and loyal consumers, broadening our product offering, improving store productivity and returning our wholesale business to growth.”
Backstage at Versace, spring 2025.
Delphine Achard/WWD
For Bizzarri, who is said to be working to secure funds for the deal, buying Versace would cement his second career in dealmaking.
The former Gucci president and CEO told WWD earlier this year that he was “prioritizing investments in creative entrepreneurs, business leaders and great Italian brands.”
Bizzarri has already dipped his toes into the investment fund pool with the acquisition of a 23 percent stake in Elisabetta Franchi, becoming chairman of the Italian fashion company. This deal was done through his personal holding, Nessifashion, last spring.
And in 2021, he took a stake and became a partner in Orienta Capital Partners, which specializes in investments in small- and medium-sized companies with strong growth potential.
Orienta Capital Partners was cofounded by Mario Gardini in 2011 and he and Bizzarri go way back as they are both from the Emilia Romagna region — as is Franchi — and worked together early in their careers in Bologna at both Arthur Andersen and Mandarina Duck in the 1990s.
His first investment, leading FOREL with Gardini as an advisory company to FARO Alternative Investments, was in design, leading the acquisition of Visionnaire last April.
FOREL entered into an agreement on behalf of the FARO fund to acquire a majority stake in the Italian luxury interior design brand with the goal to accelerate its international expansion.
As reported, FOREL is supporting a sub-fund of the newly launched FARO Alternative Investments. As per its mission statement, the FARO Fashion, Luxury and Design sub-fund targets “global companies with strong brand recognition and high business potential.” FARO Alternative Investments SCSp SICAV-RAIF is a Luxembourg-based umbrella fund managed by Crestbridge Management Company SARL with FARO Value SpA S.B. operating as lead adviser. Its aim is to fundraise 1 billion euros.
