A brand favored by celebrities such as including Hilary Swank, Sharon Stone, Jennifer Lopez and Madonna, Versace has been at the forefront when it comes to dressing for the red carpet. However, it seems as if Versace is laying low from the stiff competition in the luxury market, as it failed to breach the top ten in this year’s countdown of the world’s most valuable brands. However, don’t think that the Italian fashion house is leaving everything to fate or the consumers’ hands.
Reuters reports that the family-owned fashion house may seek outside investors—and possibly an initial public offering—to financially sustain growth as well as arm the label with sharper teeth to compete in the global luxury industry. This minor hurdle comes as the label struggled since 2009, with profits having only returned last year.
Although the brand takes pride in continuing the business with the family, Reuters details that Versace “needs financial ammunition after luxury peers such as Prada, Salvatore Ferragamo and Brunello Cucinella have successfully tapped the stock market in less than a year.” In a text message sent to Reuters, chief executive Gian Giacomo Ferraris said that “the management is studying some advisors, but no solution has yet been decided.”
Amid these plans, the Versace family intends to keep the house’s independence. The Versace group is currently owned by Donatella Versace, her brother Santo, and just recently, her daughter Allegra.