Michael Kors may be extending his fashion empire. According to Italian newspaper Courier della Serra, Michael Kors is gearing up to purchase Versace for $2 billion. The Medusa head Italian fashion house drew interest from several companies, but it appears that Kors has reached the most complex negotiations of the bunch. The purchase is still in discussion, and nothing is final. No matter what happens to the Versace brand, the Versace family will be involved within there company regardless.
Blackstone Group LP owns 20 percent of Versace, and it is unclear if they will be selling their stake as well. Neither Versace, Michael Kors, or Blackstone had an immediate comment on the ongoing negotiations. Last year, the London-based Michael Kors scooped up Jimmy Choo for $1.2 billion. Kors is also trying to purchase Coach owner Tapestry Inc. If the company is able to close on the Versace deal and the Coach deal, they will be on par to compete with LVMH. Versace has been pushing for an initial public offering, or IPO, but they failed to reach the goal due to a fluctuating market. Tiffany & Co. LVMH, PVH Corp. and Tapestry have all shown interest in purchasing Versace.