Versace CEO to Resign

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Giancarlo di Risio. Photo: Getty Images

Versace CEO Giancarlo di Risio plans to resign at a board meeting this Friday, reports the New York Times. Speculation that Di Risio would step down surfaced a couple of weeks ago, despite the Versace family's somewhat odd attempts to quiet media reports. Though he is credited with putting the label on sound financial footing since he joined in 2004 (before Versace he was CEO of Fendi), Di Risio has reportedly been clashing with creative director Donatella Versace over her lavish expenditures, such as Mario Testino's $140,000-per-day fee for shooting ad campaigns. Meanwhile the label is struggling in the recession. Last month Versace reported that first-quarter revenue was down 13 percent from a year earlier. The label has also refused to lower prices, so as not to look cheap, while customers flock to stores with sales all around them. This year, the company also brought on an outside consulting firm to help them figure out how to make money again. Di Risio is said to have had no involvement in drafting up those plans. Versace will presumably search for a replacement. But Di Risio has options. Roberto Cavalli is also searching for a CEO.

Versace Chief to Resign [NYT]
Related: Trouble Brews As Profits Fall at the House of Versace