Prada is considering buying the Versace brand

Italian fashion brand Prada was considering buying the Versace brand, the Il Sole 24 Ore daily reported on Friday.

According to the report, the luxury house is working with advisor Citi to decide whether to proceed with a deal, relying on market speculation.

Versace owner Capri Holdings Ltd has hired Barclays to review options and other brands in its portfolio, such as Jimmy Choo, the report said.

The move comes after an attempted $8.5 billion merger between Capri and Tapestry, Inc. was canceled after a court order to freeze it due to regulatory issues.

Prada shares were unchanged in Hong Kong after the report. A Prada representative declined to comment. A Citi representative was not immediately available for comment.

Family-owned Prada has emerged as one of the rare winners during a difficult period for the global luxury sector. Its sales rose 18% in the third quarter of last year, helped by its Miu Miu brand, which is enjoying a surge in popularity among younger shoppers.