Prada Heir Lorenzo Bertelli Takes Helm at Versace in Major Fashion Shakeup

Prada SpA is placing its heir, Lorenzo Bertelli, in charge of the Versace fashion house. The move follows Prada’s landmark agreement to acquire Versace earlier this year. This strategic placement signals a bold new direction for the iconic brand.According to Bloomberg, Bertelli will be named Executive Chairman of Versace once the deal is finalized. The 37-year-old sees immense potential in Versace’s global recognition, aiming to restore the business to its former greatness.

A Strategic Acquisition for a New Italian Luxury Giant

Prada agreed to purchase Versace from Capri Holdings Ltd. for about €1.25 billion. This is the largest acquisition in Prada’s 112-year history. The deal creates a stronger Italian player to compete with global rivals.The purchase was a strategic family decision. Bertelli stated they plan to apply lessons learned from the successful expansion of the Miu Miu brand. Miu Miu’s retail sales surged by 93% in 2024, proving Prada’s capability for brand revival.Adding Versace, with roughly $821 million in annual revenue, makes Prada one of Italy’s largest luxury firms. This counters a trend of Italian fashion houses being bought by foreign conglomerates. However, reviving Versace presents a significant challenge, as noted by Reuters.

Navigating Challenges and Market Skepticism

Versace’s sales fell 20% last year under Capri’s ownership. Efforts to revitalize the brand by raising prices and toning down its signature ornate designs did not succeed. The brand’s flashy aesthetic is less resonant with today’s young consumers.Market analysts are watching the acquisition with caution. Bernstein analyst Luca Solca pointed to Prada’s “abysmal” past track record with mergers and acquisitions. He cited previous ventures like Helmut Lang and Jil Sander as examples of less successful integrations.Despite the skepticism, the deal’s timing could benefit Prada. There are signs the global luxury slump may be subsiding. Rivals like LVMH have returned to growth, offering a more favorable market for a Versace turnaround.

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Prada is betting big on the Versace brand and its own leadership. The success of this high-stakes acquisition now rests on Lorenzo Bertelli’s strategic vision. The fashion world watches closely as the Prada heir prepares to lead Versace into a new era.

Thought you’d like to know

Who is Lorenzo Bertelli?

Lorenzo Bertelli is the eldest son of Miuccia Prada and Patrizio Bertelli. He is the designated heir to the Prada fashion empire and a former professional rally driver.

How much did Prada pay for Versace?

Prada agreed to acquire Versace for approximately €1.25 billion. This historic deal was announced in April of this year.

Why is Versace considered a challenging acquisition?

Versace’s sales dropped significantly last year, and its operations were loss-making. Its maximalist designs have struggled to connect with younger luxury shoppers recently.

What does this mean for the broader luxury market?

The deal creates a larger Italian-owned group to compete with French giants like LVMH and Kering. It could signal a consolidation trend within the European luxury sector.

Is Prada planning more acquisitions?

Bertelli stated the company is focused on Versace for now. However, he confirmed Prada remains open to evaluating other future opportunities.