Donatella Versace’s Future at Fashion Brand Uncertain Amid Contract End

Is Donatella Versace about to say arrivederci to the iconic fashion brand that bears her name? Or more to the point, is Capri Holdings, Versace‘s American corporate owner, about to say goodbye to Donatella?

Versace’s contract with Capri Holdings expires in February and, if media reports and widespread rumors are to be believed, Donatella’s future at her family’s firm is uncertain.

As originally reported by WWD, Capri Holdings is reportedly working with Barclays to sell both Versace and Jimmy Choo, to better focus on the relaunch of American ready-to-wear brand Michael Kors.

Versace’s contract with Capri is set to expire next month and the designer is said to have clashed repeatedly with Capri CEO John D. Idol. Last week MF Fashion, an Italian industry trade, reported that Donatella’s contract, up in Feburary, would not be renewed. MF speculated that Donatella Versace would be replaced by Dario Vitale, who recently stepped down as design director at Miu Miu.

So far, the Versace press office has neither confirmed nor denied the reports and the company did not respond to a request for comment from The Hollywood Reporter Rome.

The luxury fashion house, co-founded in 1978 by Gianni Versace and his brother Santo, was an instant success, becoming an over-night legend in the fashion industry and the culture at large. A few years later, Gianni’s younger sister Donatella joined the company as an assistant.

From the beginning, Gianni Versace distinguished himself with a bold, iconic, and recognizable style, characterized by baroque patterns and bright colors. The Medusa logo was chosen as a symbol of captivating beauty, seducing all those who behold it. (The other bit of the legend, the turning-everyone-to-stone part, was left out of the promo copy).

In the 1980s and 1990s, Versace took pride of place alongside Armani as the epitime of Italian high fashion. In the 90s, Gianni Versace played a key role in the rise of supermodels careers such as Naomi Campbell, Cindy Crawford, Marpessa Hennink, and Claudia Schiffer. He collaborated with artists like Andy Warhol, designed costumes for the La Scala opera house.

After Gianni’s murder in Miami on July 15, 1997 (an event detailed in the second season of Ryan Murphy’s American Crime Story), the creative direction passed to Donatella, who also inherited 20 percent of the company’s shares. Her brother Santo received 30 percent. Allegra, Donatella’s daughter, inherited 50 percent of the company. Gianni’s partner, Antonio D’Amico, was also included in the will with an annuity and the right to live in Versace’s homes.

Unfortunately, family conflicts arose and Antonio was not made to feel welcome. In the end, D’Amico cashed out and withdrew from the Versace family.

The first years of the “post-Gianni” era were not easy, and the brand faced results far from the glories of the past, going through a string of CEOs. As sales flagged and losses grew, Donatella Versace’s role was often criticized and questioned. There were reports of conflict inside the family. Insiders describe relations between her and brother Santo as tense and combative. Santo was isolated, and eventually stripped of his powers by his sister.

The company struggled under Donatella, but she stayed on and, after a while, Versace recovered, but for many inside and outside the brand, it was clear Donatella was no Gianni.

In 2014, the family-owned and operated company announced an agreement to sell a 20 percent state to the Blackstone fund. Four years later, the company was acquired by the Capri Holdings group for $2.12 billion, with Donatella remaining as creative director.

Today, rumors of her possible, perhaps forced, departure from the company are growing. Capri Holdings is said to be dissatisfied with earnings. According to WWD, the designer has clashed repeatedly with Capri CEO John D. Idol.

After the acquisition by Capri Holdings, the brand reached $1.1 billion in revenues in 2023. But the slowdown in global demand, particularly in China, has affected economic results. Between April and June, Versace’s revenues decreased by 15.4 percent with an operating loss of $17 million, while sales recorded significant declines in Europe and the United States.

But Donatella’s departure from the company would still represent a turning point in the fashion world. She is the last Versace to have an active role in the brand. Her brother Santo has long been away from the fashion world and has dedicated himself to philanthropic activities through the foundation that bears his name. In addition to her role as a designer, Donatella has become something of a media celebrity, gaining great popularity on social media thanks to her civic and philanthropic work and support of LGBTQIA+ rights. Last May, she was awarded the title of Grand Officer of the Order of Merit of the Italian Republic, one of Italy’s highest civilian honors.

With Milan Fashion Week less than two weeks away, the question on many people’s minds will be: Will this be Donatella Versace’s last catwalk?