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Kanye West Seeks to Cut Ties with Gap

The Gap logo is seen on the front of the company's store in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier/File Photo
The Gap logo is seen on the front of the company's store in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier/File Photo
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Kanye West Seeks to Cut Ties with Gap

The Gap logo is seen on the front of the company's store in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier/File Photo
The Gap logo is seen on the front of the company's store in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier/File Photo

Lawyers for Kanye West sent a letter to Gap Inc notifying the apparel chain that the rapper was terminating his partnership with the company, the Wall Street Journal reported on Thursday.

Gap breached its agreement with West by not opening retail outlets and releasing apparel as promised, according to the report, which added the company would still be able to sell existing Yeezy Gap products before ceasing to use the brand name.

Ties between the rapper and the clothing company have been increasingly strained recently, with West taking to social media to threaten to walk away from the brand earlier this month.

Gap did not immediately respond to a Reuters request for comment. But an attorney for West, who goes by Ye, told The Associated Press that a letter has been sent to the clothing chain seeking to terminate the contract between Gap and Yeezy.

Gap shares fell about 4% to $9 in premarket trading.

West and Gap signed a 10-year deal in 2020 to create a line of clothing under the Yeezy Gap brand.

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Fashion

Prada Buys Versace to Create Italian Fashion Powerhouse

FILE PHOTO: The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco/File Photo
FILE PHOTO: The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco/File Photo
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Prada Buys Versace to Create Italian Fashion Powerhouse

FILE PHOTO: The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco/File Photo
FILE PHOTO: The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco/File Photo

Prada struck a $1.38 billion deal to buy smaller rival Versace from Capri Holdings on Thursday in a move that unites two of the biggest names in Italian fashion.
Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss in the last few quarters.
Owning Versace, with its bold, baroque-style prints, will bring new customers to Prada, known for its minimalist style, Reuters reported.
"There are no overlaps in terms of creativity, in terms of customers," said Lorenzo Bertelli, marketing director and part of the family that controls Prada.
The merger strengthens Italy's hand in a luxury industry led by French conglomerates, the biggest being Louis Vuitton owner LVMH.
"We will provide (Versace) with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships," Prada Chairman Patrizio Bertelli said in a statement.
Bertelli is the husband of Prada designer Miuccia Prada and the couple are leading shareholders in the company.
The deal, which comes amid uncertainty over the impact of US tariffs, is a long-term project for the Italian family-controlled group and is aimed mainly at expanding revenues rather than cost-savings, Prada Chief Executive Andrea Guerra told analysts in a conference call.
It follows the announcement on March 13 that Donatella Versace was stepping down as the chief creative officer of the brand founded by her late brother Gianni in 1978.
"Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family," Donatella said.
"I am ready to support this new era for the brand in any way that I can," she added.
DISCOUNT PRICE
Capri Holdings' shares tumbled almost 10% in New York and are down nearly 30% since the start of 2025, with analysts noting the valuation was lower than expected.
The price Prada has agreed to pay - which includes debt - is a big discount to the roughly $2.15 billion including debt that US based Capri, then known as Michael Kors, paid for Versace in 2018 when it was sold by the Versace family and Blackstone.
Previous media reports had suggested a valuation of around 1.5 billion euros ($1.7 billion) but that was before recent market turmoil over tariffs.
"This transaction reflects our commitment to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo," said Capri CEO John Idol.
Prada said it had committed to 1.5 billion euros of new debt to fund a deal that is expected to close in the second half of the year.
The move comes at a time when several acquisitions and IPOs have been scuttled in the wake of a global equity sell-off and fears of recession triggered by US President Donald Trump's new tariffs this month.
NEW DIRECTION
Since Prada's acquisitions at the end of the 1990s of Helmut Lang and Jil Sander, which leading Prada shareholder Bertelli called "strategic mistakes", the group has largely steered clear of major dealmaking.
The Versace acquisition marks a major shift in the group's strategy and comes two years after the appointment of Guerra at the helm, a role previously held by Patrizio Bertelli and Miuccia Prada. It also reflects the growing influence of Lorenzo Bertelli, their son, who is expected to become CEO in the future.
Prada traces its roots back to a leather goods shop founded in Milan by Miuccia Prada's grandfather in 1913.
The Versace label, known for its Medusa head logo, was founded by Gianni Versace in Milan. Donatella became its creative force following the killing of Gianni in Miami in 1997.
Listed in Hong Kong, Prada has expanded rapidly under Miuccia and Bertelli, owning other brands including the fast-growing Miu Miu and Church's shoes.