Haute Couture News. Versace CEO Resigns Today

June 5, 2009 • Fashion

Giancarlo di Risio

The plans have been confirmed that current CEO of Versace, Giancarlo di Risio will resign from the label at a board meeting today, according to the New York Times. Although the couture house was trying to keep the news under wraps, word of Di Risio's impending leave leaked out to the press a few weeks ago. The alleged cause of the CEO stepping down is irreconcilable conflicts between Di Risio and creative director Donatella Versace.

This will be a strong blow for the label, who is currently struggling against the tides of the recession. Di Risio was a valuable asset for the company, having been credited as the main reason the label was financially sound since his arrival in 2004. Money is supposedly one of the main issues Di Risio clashed with Donatella on, disagreeing with her lavish spending on ad campaigns and refusal to lower any prices, despite their plummeting sales. Last month Versace reported that first-quarter revenue was down 13 percent from a year earlier.

Earlier this year before Di Risio had announced he was leaving the label brought in an outside consulting firm to help draft future money making plans but Di Risio reportedly had no part in the project. Now that their key player in generating sales has washed his hands, the company needs to incorporate some effective marketing techniques more than ever.

Article and Photo Source: nymag.com

—Alia Rajput

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