Resignation of CEO of Versace, Top International Luxury Brand

Lead: According to the “New York Times” report, on June 4th, Versace’s chief executive officer, Giancarlo Di Risio, announced his resignation on the board of directors. At present, the company has not given a definite reason for the departure and appointed a replacement.

Lead: According to the “New York Times” report, on June 4th, Versace’s chief executive officer, Giancarlo Di Risio, announced his resignation on the board of directors. At present, the company has not given a definite reason for the departure and appointed a replacement.

Giancarlo di Risio has been the CEO of Gianni Versace since 2004 and has contributed to improving the company's financial position. But as Versace's sales continued to fall, rumors of di Risio's going away continued. This year, the company hired outside consultants to propose new management plans to deal with the economic crisis.

Di Risio came to Versace after serving as CEO of FENDI for one year and brought the company’s financial position to a better position. However, he was in conflict with Donatella Versace, the creative director of the company's family and the brand family, mainly because Donatella Versace's lifestyle was overly arrogant. This is the news reported by Italian media.

The company declined to comment. However, on May 25th they issued a statement saying that "the board of directors unanimously denied that there was a friction between the need for cost-cutting policies between Mr. Di Risio and Ms. Versace."

Versace (Versace) is based in Milan and is entirely in the hands of the family: Allegra Beck, the daughter of Donatella Versace, is 50%, and Donatella Versace's brother Santo Versace has 100%. In thirty, Donatella Versace owns twenty percent. However, like other independent family clothing companies, they have to rethink their strategies when the demand for luxury goods is hit.

The company said last month that its first-quarter revenue fell by 13%, but they are still trying to find a "positive net result." They hired Bain & Company to draft a three-year business plan for a changed economic environment. The board adopted the plan last month.

Versace is not the only luxury brand seeking new management. The investment fund Clessidra SGR bought a 30% stake in the designer Roberto Cavalli. The company also needs new managers.

At the same time, Christian Lacroix, a Parisian prestigious and high-level custom brand, filed for bankruptcy protection and avoided immediate liquidation, but they had to reorganize and find new buyers within six months.