Prada heir Lorenzo Bertelli takes charge of Versace in a bold €1.25 billion deal

Italian luxury is entering a new era of consolidation. The Prada Group moves closer to completing its acquisition of rival fashion house Versace for €1.25 billion (approximately $ 1.4 billion). This deal is expected to close within weeks, according to the Associated Press. In the next chapter of this takeover, Lorenzo Bertelli is set to step into a key strategic role as executive chairman of Versace. This will cement the family-run Prada empire’s influence across two of Milan’s most globally recognized fashion labels.

Bertelli’s new role at Versace

Lorenzo Bertelli, the heir to the Prada fortune, will serve as executive chairman of Versace, giving him a central voice in steering the brand’s long‑term strategy. He shared in an Italian‑language podcast that he plans to spend at least the first year learning the business and the leadership team, rather than rushing major structural changes. Bertelli said he does not expect “important changes” at Versace during the first 12 months after the deal closes. He emphasized a period of observation and analysis.

A 47‑year‑old icon with ‘untapped’ power

Founded 47 years ago by Gianni Versace, the house of Versace remains one of the most recognizable names in global fashion. However, Bertelli believes its commercial performance still lags behind its brand strength.

“The brand is much bigger than the revenue that it is generating,’’ Bertelli said, signaling room for growth in sales and visibility. Bertelli stressed that Versace continues to rank among the top fashion labels worldwide. He suggested that better strategy and group synergies could unlock that “untapped” potential.

Why Prada is buying Versace now

The Prada Group first announced plans in April 2025 to acquire Versace from U.S. luxury conglomerate Capri Holdings. Capri Holdings had acquired the brand for approximately $ 2 billion in 2018. This latest transaction, valued at approximately 1.25 billion euros in cash, aims to reposition Versace after a period of underwhelming performance following the pandemic.

• The group aims to align Versace’s bold, sensual aesthetic with Prada’s so-called “ugly chic” and Miu Miu’s youthful positioning, thereby creating a diversified luxury portfolio that caters to different customer moods and price points.
• For Prada, the deal is also a scale play: adding Versace deepens its footprint in global luxury at a time when macroeconomic uncertainty is pressuring many mid‑tier and aspirational shoppers.

Strategy: continuity first, then recalibration

In his podcast comments, Lorenzo Bertelli made clear that his first priority is to understand Versace’s internal culture and operations before making any dramatic moves. He said that for at least the first year, the aim is to avoid big changes while he studies the company and its executives. This signals continuity for teams and wholesale partners. At the same time, he pointed out that Versace is not expressing all its potential. This hints that product, distribution, or brand storytelling could all be areas for later recalibration once the integration settles.

What this means for the luxury market

With this acquisition, Prada is positioning itself as a multi‑brand powerhouse capable of competing more aggressively with groups like LVMH and Kering, especially in ready‑to‑wear and accessories.

• Bringing Versace fully into Milan’s orbit under the Prada Group strengthens Italy’s profile as a strategic hub for high‑end fashion at a time when many luxury groups are rethinking their exposure to Asia and North America.
• For consumers, the expectation is that Versace will retain its high‑octane glamour while benefiting from stronger operations, supply chain, and retail discipline shaped by Prada’s experience.