Versace Denies Reports of Friction Between CEO and Donatella Versace
Versace is denying the reports of friction between Versace CEO Giancarlo Di Risio and Donatella Versace. Reuters says Versace issued a statement that there is no disagreement between Giancarlo Di Risio and Donatella Versace over cost cutting.
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."
Bloomberg reports that Versace also said, "The financial and operational management of the company" is the responsibility of the CEO, "and the board has always unanimously given priority to any actions taken to guarantee the patrimonial and financial stability of the company."
The earlier reports had also said the Versace CEO was expected to resign so if he stays on then it is pretty clear that the reports of friction were false or exaggerated.
Versace is denying the 
