Prada on Tuesday (December 2) announced that it had completed the acquisition of the smaller Italian rival Versace. Lorenzo Bertelli, the son of Prada owners Miuccia Prada and Patrizio Bertelli, will become executive chairman of Versace. Donatella Versace, from the founding family, will be the brand ambassador. The development came after Prada signed an agreement to buy Versace from the United States-based Capri Holdings for about 1.3 billion euros ($1.51 billion) in April this year. While the merger of fashion houses is not new, this one stands out due to the different cultural aesthetics, histories and philosophies each represents. Why did Versace have to sell out? Despite its iconic status, Versace has faced a serious downturn since the outbreak of the Covid-19 pandemic. According to Capri Holdings, the label has posted consecutive quarterly losses since 2024. Capri Holdings, which also owns brands such as Michael Kors and Jimmy Choo, had paid $2 billion for Versace in 2018 but was unable to get the desired returns. There are several reasons for this downfall. For instance, the …