After Winning Raves For Her ‘New Face,’ Donatella Versace Could Be Ousted From Her Namesake Company

Designer Donatella Versace‘s contract with Versace is expiring in February. As Versace is rumored to be up for sale, her position is in serious doubt.

Donatella recently earned rave reviews for her new “fresh face” look, which makes her look years younger, but the positive press may not be enough to save her job.

Capri Holdings, which owns Versace, is working with Barclays to sell the design house. According to WWD, speculation in the industry is that Capri will not renew it.

In 2018, Donatella reached a $2.1 billion deal to sell her family’s company, which subsequently led to the name change of Capri Holdings. She has been fundamental in running the brand after the death of her brother, Gianni Versace, in 1997.

In addition to her designer work, Donatella has acquired popularity on her social media due to her widely recognizable philanthropic work, support of the marginalized, and initiative to support the rights of the LGBTQ community. Among these achievements, she has also contributed to fueling the work of young struggling designers.

Capri is allegedly considering its options for Versace and Jimmy Choo – and perhaps even for Michael Kors – after the company’s $8.5 billion buyout by Tapestry Inc. was dropped after an antitrust challenge from the U.S. government. While Versace’s first-half revenues fell 22.1 percent, Capri chairman and executive officer John Idol commented that the brand could bounce back by engaging new and loyal consumers, broadening product offers, improving store productivity and returning their wholesale business to growth.

“We believe we removed too many unique Versace statement items, which resulted in a less exciting brand and product identity,” Idol said. “We also significantly reduced our offering of products for aspirational consumers as we tried to elevate the brand.”

Milan sources commented that Donatella and Idol’s clash over brand strategy had fueled speculation about her contract renewal.

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