Michael Kors strides into European luxury market with $2.1bn Versace takeover

US fashion giant Michael Kors confirmed a $2.1bn takeover of Italian high-end fashion house Versace on Tuesday, giving the former a route into the European luxury fashion market.

Michael Kors, which will become Capri Holdings following the close of the acquisition, intends to increase Versace’s annual revenue to $2bn and increase the brand’s number of store locations from 200 to 300.

The move follows Michael Kors' $1.2bn acquisition of London-based designer shoe maker Jimmy Choo last year as the company attempts to reduce the proportion of its business in North America from 66% to 57%.

Donatella Versace, who has helped to run the Italian fashion brand since the 1997 murder of her brother Gianni, will continue to oversee the label while fellow family members Santo and Allegra will remain as shareholders.

"We are all very excited to join a group led by [Michael Kors CEO] John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace's long-term success," said Donatella.

Chief executive Jonathan Akeroyd, who joined from Alexander McQueen in 2016, will also remain in place.

Despite many of the old faces remaining in place, the reaction to the news from Versace fans on Twitter was decidedly dramatic, with one claiming she would “end it all” if the sale happened and another stating that "Gianni Versace is turning over in his grave."