Earlier this month, Donatella Versace was in LA for Oscar weekend. She dressed several people for the Oscars and the Oscar parties, and Donatella also attended the Elton John Oscar party and the Vanity Fair party (she even did a costume change in between parties). Then, just last week, it was announced: Donatella was stepping away (or being forced out) of Versace, the brand her brother Gianni Versace built and the brand Donatella has been running as chief creative officer for nearly three decades. While the cover story was that Donatella was stepping away before she got pushed out, Page Six has more information about what the hell happened behind the scenes.
[As Donatella partied on Oscar night], plans, it seems, were afoot to oust Donatella from her longtime role as chief creative officer of Versace — the company founded by her brother Gianni — after she clashed with John D. Idol, the company’s chief executive, amid plummeting sales.
“Donatella is the only thing that drew anyone to Versace,” said a former employee. “They are trying to scapegoat her for all the issues, when anybody on the inside knows this came down to poor management.”
It all culminated in the announcement this week that Donatella would step down as lead designer to become chief brand ambassador, while Miu Miu’s Dario Vitale is joining as creative director on April 1.
Donatella, fashion industry sources told Page Six, is now banned from using her family name for any other brands she may launch. Under the contract she signed when Versace was sold to Idol’s Capri Holdings in 2018, she also cannot design clothes for another company.
Things started to go downhill when Emmanuel Gintzburger was brought in as the CEO of Versace shortly after the $2 billion deal went through, Page Six is told, as Donatella felt that she was being deliberately pushed out of the company that bears her family name.
“The writing was on the wall from day one that [Capri] wanted to clip her wings,” said the former employee. The mom-of-two had no problem working with the company to search for a successor, we’re told, and is the one who put Vitale’s name in the running — but “Donatella was starting to be undermined. Her creative direction was not being properly respected either. She went into this partnership with high hopes and she was doing what she thought best. She had no issue with a succession plan, but [Capri execs] had no respect for her as a human being, let alone as a Versace and as a visionary. She wanted to protect her family and her legacy. They didn’t give a s–t.”
In the end, Donatella was at Capri’s “mercy … they held all the cards,” said the former employee. “She can no longer use her last name. She can’t even design clothing. Period.”
I’m fascinated by the business side to this, because Gianni didn’t even leave Donatella the bulk of his estate or the bulk of the Versace brand, he only left Donatella 20%. 50% of his estate went to Donatella’s daughter Allegra, and Donatella basically acted as caretaker (to her daughter’s interest) and Gianni’s spiritual and creative heir since 1997. But holy sh-t, she got screwed over in a huge way. I can’t believe she even signed that deal with Capri Holdings in 2018 – to sign away her right to use her NAME or design for any other label? Jesus. And how short-sighted for the new owners too – Donatella really IS the brand and an icon in her own right. Without her, Versace is just another Italian label with significant branding issues and a scattered vision.
Photos courtesy of Avalon Red.
