Capri Holdings CEO criticized for damaging luxury brands

John D. Idol, the CEO of Capri Holdings, is facing serious criticism from insiders in the fashion industry. They claim that his leadership has harmed well-known brands like Jimmy Choo and Versace. Many describe him as a man with a “God complex,” suggesting he thinks he knows best but is actually making poor decisions. Idol took over Versace in 2018 for $2.1 billion. Recently, he reportedly pushed out Donatella Versace as the creative director, a shocking move for many. Insiders say he wants Versace to adopt a more conventional branding style, sidelining its classic symbols and raising prices amid declining luxury sales. The result, they allege, is that Idol is removing the essence of the brands he manages. Capri Holdings, which also owns Michael Kors, has been struggling financially. Despite investing significantly in Jimmy Choo, the brand is now reportedly for sale along with Versace. Idol's attempt to sell Capri for $8.5 billion failed last year due to antitrust concerns. Currently, the company's value sits around $2.3 billion. Idol has a long history in fashion. He was once credited with revitalizing Donna Karan and acquiring Michael Kors at a low price. The company first thrived post-2011 but has seen declining sales in recent years. Former employees suggest that Idol’s aggressive discounting strategies led to an oversaturation of the brand, hurting its reputation. The situation worsened when Capri’s stock dropped nearly 50% after the failed Tapestry merger. Insiders have raised concerns about Idol’s management style, highlighting issues within the company and suggesting that he has neglected the designs of the brands in favor of other pursuits. In recent reports, it is also noted that Idol has not always maintained a good relationship with Michael Kors, raising questions about the dynamics within the company. As for Donatella Versace, she is now being replaced, and many believe Idol has underestimated her influence in the fashion world. This turmoil may signal a much-needed change in leadership strategy at Capri Holdings.