John D. Idol has ‘taken heart out of’ Versace, – Business News
John D. Idol is a man who loves a gold emblem — however it seems the fashion exec has misplaced his Midas contact, in accordance with a number of sources.
The multi-millionaire CEO of Capri Holdings made his fortune at America’s greatest manufacturers, from Donna Karan to Michael Kors, earlier than shopping for Italian design home Versace for $2.1 billion in September 2018.
Now, the fashion industry — rife with peacocking and gossip — has reacted with horror to the information that Idol “pushed out” Donatella Versace as artistic director of the model her brothers Gianni and Santo launched in 1978.
Donatella Versace and John D. Idol (left) chat to Bella Hadid on the 2019 Met Gala in NYC. Getty Images for The Met Museum/Vogue
For some, although, it comes as no shock.
“He’s a God-complex, chest-beating, bulldozer of a man,” mentioned the insider of Idol.
Kylie Jenner poses with Donatalla on the 2017 Met Gala, Getty Images
Idol reportedly pushed the flamboyant Versace model to create a monogram just like Michael Kors’ “MK” or Louis Vuitton’s “LV” and to sideline its iconic Medusa emblem in favor of a more stately Baroque V — whereas growing costs, simply as the luxurious market took a post-pandemic downturn.
“He will wrap your entire brand up into that gold medallion [style] he loves to hang off handbags. He thinks every brand has the same formula,” mentioned the fashion insider. The Capri spokesperson famous this was a management crew resolution.
However, “He’s driven brands completely into the ground, like Jimmy Choo,” mentioned the insider. “He’s taken the heart out of them.”
Idol (proper) — right here with Kors and his daughter Alexandra Idol — purchased the Michael Kors model in 2003. He tried to sell it as half of a mega deal with Tapestry, however that fell by way of in November 2024 because of antitrust laws. Getty Images fir Michael Kors
The Capri spokesperson denied this, saying Capri had made important investments in Jimmy Choo.
Idol purchased the shoe model for $1.2 billion in July 2017, and WWD has reported it’s now up for sale — as is Versace, which is reportedly in talks to be scooped up by Prada.
It all comes after Idol’s bid to sell Capri — which additionally owns Michael Kors — for $8.5 billion to Tapestry, the mum or dad of such distinguished US manufacturers as Coach, Kate Spade and Stuart Weitzman. That deal flopped final yr over antitrust points.
Donatella with Jennifer Lopez, in a 2019 model of the enduring “jungle” by Versace. AFP through Getty Images
According to the Wall Street Journal, Capri Holdings is now valued at roughly $2.3 billion—solely barely more than what the company paid for Versace. It was additionally reported that Idol noticed his pay package deal shrink by 26.5%, to $10.5 million, in 2023 because the company struggled with declining gross sales and earnings
“Maybe he’s been knocked off his perch by the Tapestry deal not having gone through,” the fashion insider added.
Donatella has key relationships with the wealthy and well-known. Here, she’s seen with Jeff Bezos and Lauren Sanchéz on the Vanity Fair Oscars celebration earlier this month. WireImage for Vanity Fair
Idol has been within the fashion business for many years, serving within the mid Nineties as Group President of Ralph Lauren and becoming a member of Donna Karan International Inc. as CEO in 1997, changing Karan herself. There, he was credited with turning across the financially-troubled model — and wooing LVMH as a purchaser in 2001.
Along with the Hong Kong-based personal equity firm Sportswear Holdings, Idol acquired the Michael Kors model for $100 million in 2003 — when its income totaled $20 million — with plans to place it as a basic American “jet-set” way of life model.
The outlook was rosy at first. The company’s 2011 IPO broke data and its shares jumped 25% upon debuting on the New York Stock Exchange. That was excellent news for Idol, who took on the CEO position and later offered some of his stock for more than $400 million. He nonetheless retains 1% of Michael Kors shares.
Kors (second from left) and Idol (second from proper) with Daniel Annese of Aramis and John Demsey, the previous president of Estée Lauder. Getty Images for Michael Kors
“When Michael Kors went public, the brand was on fire. Every quarter outperformed the previous one. Kors was like being in a Lamborghini without your seatbelt on while smoking a cigarette,” retail analyst Gabriella Santaniello advised The Post.
Although the Kors business initially boomed, gross sales have been on the decline in recent times.
“The undoing of Kors was its discounting” during a “giddy, heady time that lasted around five years,” mentioned one former worker.
Fashion insiders nonetheless anticipate to see Donatella on the Met Gala alongside Anna Wintour (proper) on May 5. Getty Images
Dontalla and Jude Law on the 2024 Met Gala. Getty Images for The Met Museum/Vogue
Idol was warned a number of occasions to not low cost, in accordance with the worker. “He was told, ‘You’re over distributed,’ but all he could see was the cash register ringing.”
(The Capri spokesperson mentioned pricing strategy was a management crew resolution.)
At one level, the worker added, an industry professional in contrast the model to Duane Reade — as a result of the retailers had been on each nook and malls had been bursting with Kors purses.
“Our issue is we have pricing that is out of line for what the customer’s expectation is,” Idol advised analysts and buyers in a convention call after the Tapestry sale failed in November 2024. “They’re being much more choiceful today than they were two years ago.”
Following the September 1997 homicide of her brother Gianni Versace, Donatalla took over his model. Getty Images
As Business of Fashion pointed out, Capri’s fortunes “begin and end with Michael Kors” — which made up 70% of the group’s internet gross sales in its most up-to-date fiscal yr. Global income is now at $3.5 billion.
“When the company started to falter, instead of paying attention to the Kors brand and fixing it, [Capri] acquired other brands. It’s going to be very hard for Capri to come back from all of this,” Santaniello mentioned. “They readily admitted [during the government hearings] that during the acquisition phase, they didn’t pay attention to their designs. They thought the merger was a sure thing.”
After a decide blocked the deal, Capri’s stock tanked by almost 50% and has remained flat.
The Tapestry failure additionally confirmed how “very vindictive” Idol will be, the previous worker advised The Post, pointing to the departure of Kors former CEO Cedric Wilmotte.
Donatella (entrance) with supermodels Carla Bruni (from left), Claudia Schiffer, Naomi Campbell, Cindy Crawford and Helena Christensen on the Versace catwalk in 2017. The designer won’t have any more fashion reveals with Versace. Daniele Venturelli
The exec testified at FTC hearings final September over the deliberate acquisition, through which he admitted the company’s turnaround efforts had fallen short — and added that Tapestry was higher suited than Capri to run Kors, in accordance with a WWD report.
But it was an e mail to his spouse, which turned half of the public file, that will have carried out in Wilmotte, the worker mentioned.
In it, the then CEO wrote: “US [business] is a disaster and this is all because of JI [Idol] trying to maintain top line with discounting all day long versus refocusing on creating brand heat.”
After 16 years with the company, Wilmotte was terminated in November. The Capri spokesperson mentioned his Wilmotte’s departure got here down to Capri’s re-organization and expense-reduction initiatives.
Miu Miu designer Dario Vitale will take over at Versace on April 1. Getty Images for Miu Miu
Insiders additionally say Idol beloved displaying off his proximity to the glitzy aspect of fashion. Onlookers described him trying the “cat who got the cream” when he arrived “arm in arm” with Donatella on the 2019 Met Gala.
“We were at a fashion show, which is a $2 million event for just a six-minute presentation,” the previous Kors worker recalled. “John allowed older white dudes in the dressing room where the models were getting their hair and makeup done. Michael could be freaking out and John would have these dopes back there wandering around.”
Idol (far proper) and Kors (heart) rang the opening bell on the New York Stock Exchange when Michael Kors went public on December 15, 2011. WireImage
The former worker claimed that such backstage entry helped Idol gain membership to an unique golf membership in Southampton, not removed from his $18 million property.
“John would say ‘I want to get into a golf club on Long Island, the hardest one to get into,’” the worker mentioned. “He got in … of course.”
Idol with Kerry Washington (from left), Suki Waterhouse and Uma Thurman on the Michael Kors Collection Fall/Winter 2025 runway show in New York City in February. Getty Images for Michael Kors
Another source advised us Idol is a member at Shinnecock Hills in Southampton. The Capri spokesperson mentioned the company doesn’t talk about Idol’s personal issues.
Insiders mentioned that Idol’s relationship with Kors the designer had at occasions been “volatile” and “strained,” regardless of the latest opening of a new Michael Kors boutique on Madison Avenue.
“I think Michael was planning to leave after the sale to Tapestry, but I doubt that he can just walk now,” mentioned the previous worker.
Denying any volatility, the Capri spokesperson mentioned, “Mr. Idol and Mr. Kors have had a strong partnership since 2003, which continues today.” A rep for Kors didn’t reply for remark.
Donatella with Elton John and Versace CEO Emmanuel Gintzburger (left) on the singer’s Oscars celebration in 2023. Getty Images for Elton John AIDS Foundation
Over at Versace, Idol — who has a $21.6 million Palm Beach mansion — pushed Donatella to create garments that, in accordance with the Wall Street Journal, had been “more Palm Beach than South Beach.” This reportedly led to a frantic conflict as, when the designs flopped, Donatella tried to salvage issues by returning to her more acquainted horny fashion.
Multiple sources have additionally mentioned that Emmanuel Gintzburger, who Capri employed as CEO of Versace in 2022, had clashed with Donatella. The designer didn’t reply for remark.
She will now get replaced by Dario Vitale, who was design director on the Miu Miu model that’s owned by the Prada Group.
“The whole fashion world feels [Idol] underestimated Donatella’s power and John Idol may have met his match here — and he really needed to,” the fashion insider mentioned. “John has treated everybody so badly, that I hope this is a reckoning.”
