Italian fashion house Versace is cutting about a quarter of its global workforce and expects to post a loss this year as it takes a hit from slumping demand for luxury goods and designer items in the financial crisis.
The celebrity-favorite fashion brand, whose gowns are worn byHollywood actresses such as Angelina Jolie, is taking measures aimed at returning the group to profitability in 2011, it said in an emailed statement.
A source close to the company said Versace had a pretax loss of 400,000 euros ($593,400) last year and this would widen to 30 million this year.
Versace, which has a total workforce of 1,360, said it would cut about 350 jobs worldwide in a reorganization plan which will see it rationalize production facilities, review its store network, reduce capital investment next year and cut overheads.
All measures will be implemented by the middle of next year.
“Trading conditions in the wake of the global financial crisis have been severe and the company expects to make a loss in 2009,” Chief Executive Gian Giacomo Ferraris said in the statement.
Source
Italian fashion house Versace denied news reports there was friction between design head Donatella Versace and Chief Executive Giancarlo Di Risio.
Newspapers have speculated about Di Risio possibly leaving the company. Daily Il Sole 24 Ore last week said he and design head Donatella Versace were “close to a divorce” because of disagreement over strategy.
“With regards to the recent news items and articles that have appeared in the press, the board unanimously and categorically denies the existence of friction between the CEO and the Creative Director Donatella Versace regarding the necessary policy of cutting costs,” the fashion house said in a statement.
Di Risio was hired at Versace in 2004.
Versace’s board also approved first-quarter results, which showed a fall in revenues of 13.4 percent compared with last year “but with a positive net result.”
Source
ITALIAN fashion house Missoni has made its mark on Sloane Street, opening its first ever standalone UK store.
“The UK customer has always demonstrated a great appreciation for the Missoni product and brand heritage. Consequently we have made the exciting decision to open the first Missoni UK standalone store. We are extremely excited about this addition to our store portfolio and look forward to being part of the vibrant and cosmopolitan London scene,” says Missoni ceo Mr Gasparini of the new 3,500-square foot boutique, which takes residence at 193 Sloane Street.
Source
