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Bankers and would-be buyers are buzzing about what comes next for Versace and Jimmy Choo — and where they land next year.
Financial sources told WWD that Capri Holdings, which owns both brands, is working with Barclays to try to find buyers for the businesses.
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Neither Capri nor Barclays responded to requests for comment Friday.
The process is just beginning and it’s not clear whether the brands would be sold together or separately — or at all. A data room with confidential information on the businesses is being set up now for potential buyers. One source said Barclays suggested that it would like to start receiving indications of interest before Christmas.
While a buyer could swoop in and cut a deal, it’s possible that Barclays ends up running an auction process that would see dealmakers putting in offers over multiple rounds. Typically, bidders would first have access to data on the brands to make initial bids and then access to management as they refine their offers.
The sale process is not exactly a surprise.
Capri was widely seen as considering its options for both brands since the company’s $8.5 billion buyout by Tapestry Inc. was dropped following an antitrust challenge from the government. While Tapestry agreed to pay $57 a share for the company, Capri’s stock has lost significant value and closed down 1.2 percent to $21.36 on Friday.
Michael Kors is by far the company’s biggest business and is in need of a turnaround. Selling off the other divisions would give Capri time and resources to continue that effort.
Capri has at least toyed with the idea of spinning off the divisions before.
In late 2022, Capri’s board met with Barclays bankers and “reviewed certain potential strategic alternatives.” They included a sale of all of Capri, an initial public offering of equity interests in Versace and Jimmy Choo as well as the sale of the two luxury brands.
At the time, the bankers said there were only a “limited number” of buyers for Capri and that there would “less strategic interest in acquiring” Versace and Jimmy Choo together.
Once the negotiations started with Tapestry, Capri continued to play the field with John Idol, chairman and chief executive officer, meeting with potential suitors. According to regulatory documents, one was with the “chairman and chief executive officer of a multi-industry holding company” who discussed the possibility of buying both Versace and Jimmy Choo or investing in any IPO. Another was “the chairman and chief executive officer of an international luxury goods company,” who wanted to circle back to “prior conversations” about buying both brands.