After nearly 30 years at the top of the family brand founded by her late brother, Gianni Versace, Donatella Versace will be replaced as creative director by Miu Miu’s Dario Vitale and take on the role of brand ambassador.
Donatella Versace has stepped down as the head of Italian luxury fashion empire Versace after clashing with its owners.
The designer, 69, has been at the helm of her family’s eponymous brand for nearly 30 years and will be succeeded by Dario Vitale, who was previously ready-to-wear design director at Miu Miu.
It was announced on Thursday that she will step down as creative director of Versace, a position she took on after her brother and its founder, Gianni Versace, was killed in Miami in 1997.
Instead, Donatella will take on a role as the company’s chief brand ambassador after Vitale formally steps into her shoes on April 1.
It comes after rumours of discord between Donatella and Capri Holdings, which purchased the fashion empire in 2018 in a $3.79 billion (£1.67 billion) deal.
According to reports, the Italian designer is said to have clashed repeatedly with Capri’s chief executive John D Idol, who is understood to be dissatisfied with earnings.
Speaking about her exit, Donatella said: “Championing the next generation of designers has always been important to me. It’s been the greatest honour of my life to carry on my brother, Gianni’s, legacy. He was the true genius but I hope to have some of his spirit and tenacity.”
In her new role, she is understood to be preparing to focus on dedicating herself to the support of Versace’s philanthropic and charitable endeavours.
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Advertise with NZME.Her departure had been brewing for some months, with The Hollywood Reporter suggesting the American corporate owner of the company was “about to say goodbye to Donatella”.
After their acquisition of Versa, the brand reached $1.92 billion in revenues in 2023, but a slowdown in global demand affected the economic results.
Between April and June, the company’s revenues decreased by 15.4%, resulting in an operating loss of $29.7 million, while sales recorded significant declines in Europe as well as the United States.
The brand’s financial forecasts show sales falling from $1419 million in the current financial year to $1402m in the next. In February, the agency S&P Global Ratings downgraded Capri Holdings’ debt, saying performance pressures and high borrowing could pose problems in repaying its debts.
“Versace has been struggling, so it’s not surprising that a change is being made,” said David Swartz, an analyst with financial services firm Morningstar.
Read more: ‘That’ Iconic Versace Dress
“The brand has lost relevance and has fallen behind similar European luxury brands,” he explained, adding: “I don’t know if bringing in Dario Vitale is directly related to the potential sale to Prada, but it seems like it makes it even more likely.”
During slower periods for the industry, Versace does not produce items that remain resilient sellers, such as luggage for Louis Vuitton, for example.
However, Donatella was on the forefront of the collision of fashion and pop culture with figures such as Jennifer Lopez and Madonna catapulting into the clothing industry.
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Advertise with NZME.She famously designed the green jungle dress that Jennifer Lopez wore to the 2000 Grammy Awards - the dress that Google president Eric Schmidt claimed inspired the founding of Google Images because it was so viral.
Donatella has also championed multiple generations of supermodels, from 90’s “Big Five” model Naomi Campell to American star Gigi Hadid.
Meanwhile, Capri Holdings is said to be working to sell both Versace and Jimmy Choo in order to better focus on the relaunch of American ready-to-wear brand Michael Kors.
The news also comes amid speculation that the Prada Group is interested in purchasing the fashion house from Capri Holdings, with reports suggesting it has until mid-March to conclude a deal if one is finalised.
A deal with Prada would bring the Versace brand back under Italian ownership.
At Milan Fashion Week, the Prada design boss and founder Mario Prada’s granddaughter, Miuccia Prada, said the Versace deal was “on everyone’s table”.
According to reports in Bloomberg, the group has since been given access to the fashion brand’s latest financial and sales figures after completing initial due diligence.
In a statement issued on Thursday, Capri Holdings said Donatella would now “dedicate herself to the support of Versace’s philanthropic and charitable endeavours and will remain an advocate for the brand globally”.
Idol added the announcement of her change of role was part of “a thoughtful succession plan” for the Versace brand.
The New York-listed company’s boss credited Vitale, the incoming creative director who began his career at Bottega Veneta, as a “strong design leader” whose “talent and vision will be instrumental in Versace’s growth”.
Idol also used the statement to thank Donatella for playing “an integral role in the company’s global success” since 1997.
In her 28 years as creative director of Versace, which was first founded in Milan in 1978 by Donatella and her brothers Santo and Gianni, she has come to embody the brand.
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