Versace sale turns up heat on fashion's independent outliers

PARIS - Michael Kors' swoop on Versace leaves a shrinking universe of fashion brands determined to go it alone and fend off luxury empire builders, raising the pressure on those struggling financially to lift sales or sell out The Italian red carpet favorite is the latest label to be picked off by a conglomerate after years of expansion by European groups like Louis Vuitton owner LVMH, which now has a stable of 70 brands from champagne to watchmakers Growing cash piles at LVMH and its Paris rival Kering, the emergence of aspiring conglomerates like US-based Kors or China's Shandong Ruyi and a widening gulf between performing brands and those straining to catch up could propel more deals, some industry watchers said.

"Compared to the bigger brands, standalone groups lack the needed oxygen Consolidation is inevitable," said Giuliano Noci, professor of strategy and marketing at Milan's Politecnico School of Management One caveat is that Kering and LVMH are unlikely to want to take on brands that need too much fixing, investment bankers said.

China's Shandong brought Swiss shoe brand Bally this year, and rival Fosun snapped up French couture house Lanvin, with the two outlining ambitions to break into luxury For conglomerates, accumulating brands can bring savings and advantages. . Source