Versace sticks it out
Versace sticks it out

Versace sticks it out

Fashion house Versace will no longer try to sell a minority stake. Instead, the company will work towards breaking even in 2007. CEO Giancarlo Di Risio, who joined the company in 2004, revealed the news yesterday. He said that 2007 would be the earliest possible time to begin any type of investment discussion.

Di Risio warned that the financial results that are to be published next week would not be positive, with further losses and a fall in revenues, but said that the end of the fiscal year 2004 signified the end of “an unhappy period for Versace”.

He reported that Donatella Versace, who emerged successfully from rehab, had been instrumental in the turnaround of the company, and said that he expects great things for the future. “This is a historic transformation from a family-run company to a manager-run company,” he told WWD. “We are abiding by the same principles as a publicly listed company. Our priority is to bring the company into a state of equilibrium.”

Di Risio has reduced the number of Versace Medusa head logos used in the collections in an effort to differentiate between top-line goods and other goods. “Versace is one of the very few companies that has a symbol as strong as the Medusa. But you have to know how to exploit it,” he said. Di Risio has shifted the company’s focus to top line goods and accessories.

Versace currently has a debt outstanding of GBP 55 million, which, Di Risio pointed out, means “that as of today we can no longer talk about the company having an at-risk situation in terms of debt.”

The company is currently finalizing the completion of its boutique in Milan, the first floor of which is dedicated to accessories. It is also renovation its New York store. “The Fifth Avenue store is particularly special because Gianni really wanted it,” said Di Risio. It is not yet clear if the Versus diffusion line will be discontinued.

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