The logo of Milan based Gianni Versace SpA. The fashion house is well known for its Medusa-head logo
Speculation was rife that the CEO, director duo were at loggerheads over some cost-cutting measures and the opening of new stores. The newspaper daily Il Sole 24 Ore had reported of the rift last week and had stated that Mr. Di Risio and Ms. Versace were "close to a divorce".
Versace clears the mist
The Italian fashion label, founded by Gianni Versace in 1978, clarified, “With regards to the recent news items and articles that have appeared in the press, the board unanimously and categorically denies the existence of friction between the CEO and the Creative Director Donatella Versace regarding the necessary policy of cutting costs.”
The board also gave a go-ahead to the new three-year industrial plan developed with Bain & Co. for 2009-2012, and urged the management to take immediate action on the new plan.
Versace acknowledged the fact that, as with other luxury brands, it has had to bear the brunt of the ongoing, unrelenting recession. Sales at the fashion house slid 13.4 percent, partially due to the crisis at the Italian clothing maker Ittierre SpA. The latter produces jeans and sportswear collections for Versace under license, and is under bankruptcy protection.
Versace's board, which approved first-quarter results, revealed that there was a fall in revenues as compared with last year’s figures "but with a positive net result". Sales were said to have improved in April and May.
About Gianni Versace SpA
The Milan-based company is privately held by the Versace family. Ms Versace, a minority shareholder with 20 percent stake, has the dual role of vice president and creative director in the company.
Her daughter Allegra owns half of the company. She inherited this 50 percent stake after Gianni Versace, the founder and her maternal uncle, was murdered in 1997. Gianni’s brother Santo owns the remaining 30 percent.
Post new comment