The designer is to show his debut collection for the French house in Paris.
Market sources say Versace is working on an expansion plan ahead of the listing and that its has recently held discussions with Tisci.
The collection features co-branded items ranging from denim and camouflage jackets to a range of bags in three materials.
The world’s second-largest retailer is working on better integrating online and offline models in categories like textiles to provide a long-term boost to its ailing hypermarket sales at home.
Recently surfaced letters from two L.A. County Board of Supervisors and the director of the workforce development agency sought to stave off layoffs at the T-shirt firm.
LuAnn Via has left the retailer, which reported a weaker than expected holiday season.
The deal with Sycamore is subject to better offers at a court auction.