Versace, the Italian fashion house founded 40 years go by the late Gianni Versace, is on the brink of being sold according to reports.

Michael Kors, the US fashion group, is reportedly in the frame to buy the company which is worth about $2bn.

Other potential buyers include shoe firm Jimmy Choo and jeweller Tiffany & Co.

The Versace family owns 80% of the company after selling a 20% stake to US private equity group Blackstone four years ago.

Donatella Versace, its artistic director and vice president, has called a staff meeting in Milan for Tuesday, Italian newspaper Corriere della Sera reported.