John D. Idol is a man who loves the gold logo, but according to multiple sources, it appears that the fashion executive has lost Midas's touch.
Many CEOs of Capri Holdings created fortunes with America's largest brands, from Donacaran to Michael Kors before purchasing Italian Design House Versace for $2.1 billion in September 2018.
Now the fashion industry – full of peacocking and gossip – is responding to the news of idols with fear. “Squeezed” Donatera Versace As the brand's creative directors, her brothers Gianni and Santo were founded in 1978.
However, for some, there is no shock.
“He's a divine intricacies, heart-pounding, man bulldozer,” the idol insider said.
The idol reportedly pushed the gorgeous Versace brand Create a monogram It resembles Michael Kors' “MK” or Louis Vuitton's “LV” and to stand by its iconic Medusa logo in favor of a more imposing Baroque V. While raising prices, just as luxury markets took a post-pandemic recession.
“He will wrap your entire brand in that gold medallion [style] He loves to hang his handbag. He believes that all brands have the same formula,” Fashion Insider said. A Capri spokesman said this was the decision of the management team.
But “He's driving the brand completely to the ground like Jimmy Chew,” the insider said. “He took their hearts away from them.”
A Capri spokesman denied this, saying that Capri had invested heavily in Jimmy Chu.
Idol bought the shoe brand for $1.2 billion in July 2017. WWD reports It's currently on sale. Like Versace, it is reportedly said that Prada will be scooped up.
It all comes after an idol bid to sell Capri, which owns Michael Kors – $8.5 billion on tapestry, the parent of well-known US brands such as Coach, Kate Spade, and Stuart Weitzmann. The deal made me worried about the antitrust issue last year.
According to Wall Street JournalCapri Holdings is currently valued at around $2.3 billion. This is slightly more than what the company paid for Versace. It was also reported that his pay package had shrunk by 26.5% and in 2023 it had been reduced to $10.5 million as he struggled with sales and profit declines.
“Maybe he was knocked out of his perch by failing to pass the tapestry deal,” the Fashion Insider added.
Idol has been in the fashion business for decades, working as the group president of Ralph Lauren in the mid-1990s, and in 1997 he joined Donna Karan International Inc. as CEO, replacing Karan herself. There, he was believed to turn around the financially violated brands and begged LVMH as a buyer in 2001.
In addition to Sportswear Holdings, a private equity company based in Hong Kong, Idol acquired the Michael Kors brand for $100 million in 2003 when revenue totaled $20 million.
The outlook was initially rosy. The company's 2011 IPO broke records, with its shares rising 25% when it debuted on the New York Stock Exchange. This was good news for idols who took on the role of CEO and later sold a portion of his stock for over $400 million. He still holds 1% of Michael Kors' stake.
“When Michael Kors was released, the brand was on fire. It was better than the previous one quarterly. The Kors was like being in a Lamborghini without a seatbelt while smoking a cigarette,” retail analyst Gabriella Santaniero told the Post.
The KORS business was initially booming, but sales have been declining in recent years.
“The cancellation of Kors was “at that discount,” during a whimsical and difficult time that lasted about five years,” said one former employee.
According to employees, idols were warned not to receive discounts on multiple occasions. “He was told, 'You're being distributed too,' but all he could see was the cash register. ”
(A Capri spokesman said the pricing strategy was a decision by the management team..))
At one point, the employee added that industry experts compared the brand to Duane Reade. Because the shops were in every corner and department stores were bursting with Kors handbags.
“Our problem is there is a boundary price about what our customers' expectations are,” Idol told analysts and investors on a conference call after a tapestry sales failed in November 2024.
As Fashion business Pointed out, Capri's property “starts and ends with Michael Kors.” This accounted for 70% of the group's net sales in the most recent fiscal year. Currently, global revenue is $3.5 billion.
“Instead of the company paying attention to the Kors brand and fixing it, when the company began to decline. [Capri] We acquired other brands. It's going to be very difficult for Capri to come back from all this,” Santanegiello said. [during the government hearings] During the acquisition stage, they were not paying attention to their designs. They thought the merger was for certain. ”
Capri stocks have been tanked nearly 50% and remained flat after the judge blocked the transaction.
The tapestry breakdown also showed how there are “very vindictive” idols, the former employee told the Post, pointing to the departure of former Kors CEO Cedric Wilmotte.
Executives testified at the FTC hearing about the planned acquisition last September. He acknowledged that the company's efforts to change were lacking. WWD Report.
But it was an email to his wife, which became part of the public record and could have gone at Wilmott, the employee said.
In it, the CEO at the time wrote: [business] It's a disaster, and this is all ji's fault [Idol] We are trying to refocus on creating brand heats and maintain our top line with discounts all day. ”
16 years after work, Wilmott was fired in November. A Capri spokesman said his departure for Willmot has resulted in Capri's reorganization and cost-cutting initiatives.
The insider also says she loved to show off her idol's proximity to the flashy side of fashion. Onlookers explained that he was watching “the cat who got the cream” when he arrived “with his arm in” with Donatera at the 2019 Met Gala.
“We attended a fashion show, a $2 million event with just six minutes of presentation,” recalls a former Kors employee. “John allowed the old white guy in the dressing room where the model was doing hair and makeup. Michael went crazy and John was walking around these dopes.”
The former employee claimed that such behind-the-scenes access helped him win membership in Southampton's exclusive golf clubs, not far from his $18 million property.
“John said he wanted to go to a golf club on Long Island. “He… of course he's in.”
Another source said the idol was a member of Southampton's Cinecock Hills. A Capri spokesperson said the company had not discussed the idol's personal issues.
The insider said that despite the recent opening of the Michael Kors boutique on Madison Avenue, the designers sometimes have a relationship with the idols with “unsteady” and “stiffness.”
“I think Michael was planning on leaving after the sale to the tapestry, but I don't think he can walk now,” the former employee said.
A Capri spokesperson denied the volatility and said, “Idol and Kohn have had a strong partnership since 2003 and continue today.” Kors representatives did not respond to comments.
In Versace, an idol with a $21.6 million Palm Beach mansion pushed Donatera to make clothes, “more Palm Beach than South Beach,” according to the Wall Street Journal. This reportedly led to a desperate clash as Donatella tried to save things by returning to her more familiar, sexy style when the design flops.
Also, Emmanuel Ginzberger, who Capri hired as Versace's CEO in 2022, had a clash with Donatera, sources say. The designer did not respond due to comments.
She does Now it's replaced by Dario VitaleHe was the design director for the Miu Miu brand owned by the Prada Group.
“The whole world of fashion feels [Idol] Underestimating Donatella's power, John Idol may have come across his match here – and he's really what he needs,” said the Fashion Insider.
