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Versace profits plunging

By FashionUnited

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The high-profile Italian fashion house is suffering enormous losses, despite a successful show during Milan fashion week. The company is reportedly making GBP 175 million less a year than when Gianni Versace was alive. This translates to a year on year decline of 17.2%. Versace's net debt at the end of 2003 amounted to GBP 83 million. Furthermore the family suffered a GBP 25 million inheritance tax bill.

A host of problems has been plaguing the company causing damage to its reputation. Chief designer Donatella Versace was recently hospitalized due to "a personal family matter". Her 18 year old daughter, who is now the largest shareholder in the company with a 50% stake, has expressed no interest in the fashion industry and wants to have a career in film. The fashion industry has started to refer to the fashion house as "troubled" and watches its progress with trepidation.

Versace