Milan just got more interesting. One of fashion’s flashiest names, Versace, is now officially part of Prada. The €1.25 billion deal was announced on Thursday, shaking up the luxury fashion world and uniting two Italian powerhouses with totally different vibes.

Want to know how this iconic label went from glitzy supermodel runways to a fresh start under Prada? Here’s a quick breakdown of everything you need to know about Versace.

A creative genius from Calabria

Versace began with Gianni Versace, a young designer from southern Italy. His mom was a dressmaker, and he started creating clothes at an early age. He moved to Milan when he was 25 and launched his first signature collection in 1978. His brother Santo looked after the business side.

“He was a 360-degree creator, a real artist, he had a pure creative vision on colours and materials,” said Stefania Saviolo from Bocconi University.

The brand that loved bold and sexy

Versace wasn’t one for subtlety. Gianni’s designs were all about drama—think bold prints, animal skins, leather straps, and figure-hugging fits. Celebs like Madonna and Elton John were regulars, and he helped make supermodels like Naomi Campbell and Claudia Schiffer household names.

One of the most talked-about looks? The black dress Liz Hurley wore to the 'Four Weddings and a Funeral' premiere in 1994. Held together with gold safety pins, the dress became iconic and is still known as “THAT dress”.

A tragic turning point

In 1997, Gianni Versace was murdered outside his Miami villa by Andrew Cunanan, a serial killer obsessed with luxury. The shock was massive—especially since the brand was at its peak.

After his death, sister Donatella took over as artistic director, while Santo managed the business. Donatella, who had been leading the Versus line, suddenly found herself in charge of the whole house.

Donatella’s rise and struggles

Donatella had worked closely with her brother for over a decade, but after his death, she faced a tough time. She entered rehab in 2004 for drug addiction and was often dismissed as not being up to the task.

But she pushed through. One of her most memorable creations? The daring green jungle dress Jennifer Lopez wore to the 2000 Grammys—it basically broke the internet before that was even a thing.

Last month, Donatella, now 69, stepped down as creative director after nearly 30 years. She handed the job to Dario Vitale, the designer behind Miu Miu’s recent success. Donatella remains the face of the brand as its chief ambassador.

A brand in need of revival?

Versace was bought by US-based Capri Holdings in 2018 for €1.8 billion. But things haven’t been smooth since. With sales falling and its star power fading, the label has struggled to keep up.

“The Versace brand has become too commercial. Prada can allow it to return to its golden age and reconnect with its luxury DNA,” said fashion consultant Antonio Bandini Conti.

Now that it’s under Prada—known for its chic minimalism—Versace has a real chance at a comeback. Despite the global slowdown in luxury sales, Prada is thriving. With deeper pockets and solid leadership, the hope is that it can breathe fresh life into the once-dazzling brand.

Versace’s revenue for its third fiscal quarter in 2025 fell 15 percent to $193 million. But with Prada now in charge, many in fashion are watching closely to see what comes next.