Donatella Versace Banned From Using Family Name As Fashion Giant Secretly Negotiates Prada Deal
At this year's Oscar after-parties, Donatella Versace shined in not one but two sequined pieces. She rubbed elbows with celebrities, including Elizabeth Hurley, Jeff Bezos, and Jennifer Lopez.
But behind all the glitz, things were going wrong in Milan.
According to sources who spoke to Page Six, the 69-year-old fashion mogul was dismissed as Chief Creative Officer from Versace for disagreements with the CFO of Capri Holdings, John D. Idol.
Sales had sunk since the company was purchased for $2 billion in 2018, and insiders say Donatella was made a scapegoat.
A NY talent revealed, "Donatella is the only thing that drew anyone to Versace."
"They are trying to scapegoat her for all the issues, when anybody on the inside knows this came down to poor management."
The announcement this week revealed Donatella's new title as Chief Brand Ambassador, while Dario Vitale — from Miu Miu — will be the new Creative Director, starting April 1. This is a potential end to Donatella's creative future within the company as her contract also prohibits her from using the Versace name or designing clothes for another brand.
The insider said, "The writing was on the wall from day one that [Capri] wanted to clip her wings."
"She can no longer use her last name. She won't even design clothing. Period."
In 1997, when her brother Gianni was sadly murdered, it was Donatella who somehow – despite no real design training – transformed Versace into a veritable red-carpet titan.
A deal with Prada might return the Versace brand to Italian ownership, although Miuccia Prada said the deal was "on everyone's table" during Milan Fashion Week earlier this month.
Corporate Clash and Financial Decline
Tensions mounted after Emmanuel Gintzburger was appointed as Versace's CEO. Capri began imposing changes that Donatella increasingly felt undermined her brand, including the proposed new monogram, similar to Louis Vuitton's "LV."
Sales from Capri dropped 15.4%, and the company lost $17 million in operating profit in 2023. Coach owner Tapestry had its $8.5 billion Versace bid shot down over antitrust fears.
As she prepared for her final show, Donatella reflected on the years, saying, "Being told what to do, being told what is going to sell... if you try to please too many people and to many managers, creativity is gone," in comments to Vogue.
Donatella's forced exit represents the end of an era as Versace opens a new chapter under Dario Vitale. Now, faced with the hollow shell of her creative legacy, the fashion world is poised to find out whether the iconic brand can survive being so thoroughly divested of its legendary matriarch.
According to Page Six's source, "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.
