Versace said to be nearing $2bn sale to Michael Kors

Versace is on the cusp of agreeing a deal to be ought by US fashion giant Michael Kors in a deal that values the Italian fashion house at $2bn, according to reports.

According to Italian daily newspaper Corriere della Sera, the deal will likely see private equity firm Blackstone, which took a 20% stake in Versace in 2014, fully exit while the Versace family will continue to work in the company in some role.

Sibling duo Donatella and Santo Versace have helped to run the iconic fashion brand as creative director and chairman respectively since the murder of their brother Gianni in 1997.

Meanwhile, Kors purchased shoe designer Jimmy Choo for $1.2bn last year and is attempting to build a multi-brand fashion empire.

Other outfits linked with a possible purchase of Versace have included Tiffany & Co., LVMH, PVH Corp. and Tapestry over recent months.

The fashion house had been working towards an initial public offering in recent years, but chief executive Jonathan Akeroyd stated in January that there was "no rush" to list on the stock market.

Plans were then put on hold, with a spokesman for the company stating that there had "never been a specific timetable" for the offering and thus nothing has been postponed".