ROME (Dow Jones)--Italian fashion house Gianni Versace SpA on Friday said its chief executive, Giancarlo Di Risio, resigned after nearly five years, in a widely anticipated move.
The company's board, which includes designer Donatella Versace and her brother, Santo, said in a statement that the decision over Di Risio's resignation had been mutual.
Last month, The Wall Street Journal reported that Di Risio would resign after clashing with Donatella Versace over cutting costs and simplifying the house's design to lower prices.
Di Risio, a former executive at LVMH Moet Hennessy Louis Vuitton SA (12101.FR), will remain on the board temporarily to ensure a smooth transitional period as the company looks for a new chief executive.
According to a person familiar with the matter, the Versace family has begun to scout for Di Risio's successor and has been in talks with Pringle of Scotland's chief executive, Kim Winser.
Hired in September 2004, Di Risio was brought in to clean up the company's finances. Since then, Versace has cut debt, overhauled licensing deals and homed in on luxury accessories.
In Italy, Gianni Versace - as well as Prada, Dolce & Gabbana and industry giant Giorgio Armani SpA - remains privately owned. Gucci is owned by French retailer PPR SA (12148.FR), while Rome-based Fendi is part of the LVMH Moet Hennessy Louis Vuitton (MC.FR) empire.
Founder Gianni Versace was shot to death in 1997. His sister Donatella now owns a 20% stake in the company. Her daughter, Allegra Versace Beck, owns 50% of the fashion house, while Santo Versace owns a 30% stake in the company.