Versace To Forego Internal Financial Re-Structure

Versace has reportedly stopped its search for a suitable financial partner in a move to restructure its fashion empire under the guidance of the newly appointed CEO, Giancarlo di Risio.

Di Risio, who was the former CEO at Fendi, joins the ailing fashion house as the Company named three other financial experts to their board. The moves were regarded by analysts as a chance for Versace to find a financial partner on the most favourable terms.

According to WGSN, sources are saying the firm is to focus on costcutting and organic development with di Risio having full powers to restructure. Versace has said little other than to confirm to the Italian press that the board late last week gave di Risio those powers.

At the same board meeting, former co-CEOs Santo and Donatella Versace were made president of the board and vice-president of the company respectively. The investment firms that were seeking a financial partner have not commented, although industry observers speculated that Versace's losses and the fact that it was only offering a minority stake could have put off potential investors.

Di Risio has a strong reputation and good knowledge of Versace through his time as CEO of IT Holding, which held some Versace licenses. Versace is 50 per cent owned by Allegra Beck, niece of Gianni Versace, Donatella owns 20 per cent and Santo holds 30 per cent.