Behind glam luxury brands Michael Kors and Jimmy Choo lurks a troubled holding company losing millions

In September 2018, the CEO of what was then Michael Kors Holdings delivered thrilling news to investors. The company had agreed to acquire the storied Italian fashion house Versace from private equity giant Blackstone in a $2.1 billion blockbuster deal. 

The purchase created a multi-brand luxury powerhouse made up of Michael Kors jet-set lifestyle apparel and designer bags, the iconic Jimmy Choo footwear brand, plus the red-carpet glamour of Versace. Donatella Versace herself, who stepped...