Change in top-management at Versace

After just three months in office, chief executive Fabio Massimo Cacciatori has left Versace and Daniele Ballestrazzi, financial director of the Milan fashion house, has been nominated general manager ad interim.

The reasons behind Cacciatori's farewell seem to have been a certain amount of disharmony with shareholders and, especially, a clash over the possibility of selling the historical palazzo on Via del Gesù.

Life with the company hasn't been easy for Cacciatori; last year it lost 5.8 million despite capital gains of 25 from the agreement with Luxottica for a twenty-year eyewear license. A 100-million bond issued four years ago with Morgan Stanley is due to mature July 2004, and in April there will be an unknown quantity in the shape of Allegra, Gianni's niece, who comes of age and will acquire the equity stake currently controlled by the tutelary judge.

The state of play will become clear only then: what will Allegra do, will the shareholding in fact be managed by her mother, or not? An unknown quantity which at this point in time also seems to be holding up new solutions for Versace's future. But one thing is certain: at almost six years since the death of Gianni, the brand continues to have strong appeal. According to specialist surveys, the Versace label is still one of the leaders worldwide for visibility and glamour.