Versace Debt -the Facts

[Lena]

they are in a big mess, i guess..

here all the financial facts from wwd, Donatella only holds 20% and she's not in the best terms with Allegra

MILAN — Versace appears to have solved at least one of its pressing financial problems. The company said late Wednesday that it has given a mandate to Banca Intesa to restructure the company’s debts.
......

Versace also released full-year 2003 sales figures showing a 17.2 percent drop to $486.4 million, or 400 million euros at current exchange, from $587.1 million, or 482.8 million euros, the year before.

Versace said its net financial debt as of Dec. 31, stood at $142.3 million, or 117 million euros, down from $158.1 million, or 130 million euros, the year before.

News of the refinancing comes as the fashion world ponders Versace’s future. Chief executive Santo Versace told Italian daily Corriere della Sera last week that the Versace family is willing to sell as much as 25 percent of the company to an investor, such as a private equity fund.
In any case, the future of the house’s shareholding structure is uncertain. The intentions of Allegra Beck, Donatella Versace’s daughter, are not yet known. She inherited 50 percent of the family’s company from her uncle, Gianni Versace. When she turns 18 this summer, Allegra will gain full control over her stake. Santo Versace, brother of Donatella and Gianni, holds 30 percent of the company, while Donatella holds 20 percent.

Meanwhile, there is speculation that Versace could strike a deal to either sell its beauty division, Giver, or strike a licensing pact for fragrances and other beauty products. .....
Elsewhere, beauty giant L’Oréal declined to comment on whether it would be interested in the Versace beauty business

 

[faust]

Honestly, I am a little bit confused. I know her designs are vulgar, but why aren't they selling, while so many vulgar labels do (Cavalli, D2, etc...). They have a brand name, advertising budget, jeans line, boutiques, etc... The only thing I can think of is not enough editorial coverage, and MUST-HAVE lists... But what do I know, I don't read Vogue...

 

[softgrey]

you know...as far as i can tell...despite everyone trying to paint a rosy picture...pretty much every company is suffering from low sales...it's finally starting to get to the point where people can't keep pretending everyting is okay and hoping that it will turn around...steps have to be taken...the industry is in serious trouble...here's your proof, if anyone had any doubts...

even with the fall collections being so wearable...what i'm hearing is that buyers still don't have the dollars to place large orders... they haven't been selling enough in the past seasons to really make large investments yet...they just don't have the money...as far as i can tell...it's still going to be some time before we get back to where we were prior to 2001...(I won't say the date because i know it annoys faust )

this whole trend of looser silhouettes and more covered up styles isn't going to help versace any either...if they were in trouble before....can you just imagine now?...

there are also just more competitors now-look at all the newbies who have cropped up in the past several years who are going for the same market...proenza, rochas, lanvin, balenciaga, etc...the luxury market is by definition a niche market...there aren't enough customers to go around...it's as simple as that...faust, you mentioned cavalli-they have taken a significant market share away from versace...i'm sure of it...

and now...since they are all raising prices...i honestly don't see how this is going to work...i think they all need a better plan or to re-think their strategy somehow...and certainly...some of these companies will eventually close...just like some of the magazines...i don't think the market can sustain all of them...

still hoping for the best and watching how this all plays itself out...


thks for the post lena...

 

[faust]

Originally posted by softgrey@Mar 25th, 2004 - 1:58 pm
even with the fall collections being so wearable...what i'm hearing is that buyers still don't have the dollars to place large orders... they haven't been selling enough in the past seasons to really make large investments yet...they just don't have the money...as far as i can tell...it's still going to be some time before we get back to where we were prior to 2001...(I won't say the date because i know it annoys faust )

lol, we are allowed a difference in opinions!!!

 

[mikeijames]

thanks lena for the article...fashion drama is everywhere it seems.

 

[Acid]

i hope allegra can do something to revive the versace label

donatella is a BAD BAD BAD influence on versace
spending WAY too much money on celebrity promotion and using herself as a versace girl

no wonder nobody wants to buy versace......just look at old don, enough to put any punter off. as for the furniature even elton sold all of his

the current menswear collection couldnt be worse......terrible terrible fit, tacky attention to detail and CHEAP quality

 

[Erzébeth]

she's not on good terms with her daughter? hmm.. just never expected that.

 

[Erzébeth]

also.. acid's avatars are interesting..

 

[As You Like It]

For the first time, ever, I have to agree with Acid's assessment of a woman.

Donnatella Versace is scary. Her designs and style are garish and trashy and she herself needs to hire a personal stylist, stat. That ballglove tan and the bleached-and-ironed hair need to go.

In a shoe thread I started, I was warned by a user that many fashionistas would probably fail to take me particularly seriously because I wear clunky, unstylish Doc Marten's with practically everything...well the same could be extended to Donnatella Versace. She always looks such a mess and she projects herself so thoroughly over her collections that there's this lingering aura of 'ho emanating from the label.

Using Christina Aguilera, another dubious dresser, as her newest poster girl doesn't necessarily help, either. Christina, while a very talented singer (I love her music, actually) isn't known for consistently dressing or presenting herself well. Moreover, she is really, really young, which could easily alienate the older market who can actually afford Versace clothing.

I think Versace's day has passed, though, style-wise. The label was always about glitz, excess, and vulgarity, even before Gianni was murdered. 15-20 years ago, conspicuous consumption was the byword. Today, maybe not so much. While there is a luxe market, obviously, it is not so much a driving force behind the rest of the apparel industry. In 1984, everyone wanted to look like Dynasty. Even the lower-range clothing suppliers like Sears and Penneys were selling wide shoulderpads and jewel tones. Today, the lower range markets are much plainer and more restrained than most of the luxe markets. Most of us proles wear khakis, cords, plain bluejeans, polo shirts, tee-shirts, plain button-downs, and sweaters to our office-grunt jobs. We leave the printed-chiffon Chloe to those lilies of the field to whom this sort of thing is marketed.

 

[softgrey]

lilies of the field...

 

[Lena]

Originally posted by Erzébeth@Mar 26th, 2004 - 12:38 am
she's not on good terms with her daughter? hmm.. just never expected that.

Allegra has some kind of a strange obsession with food and Donatella can be very rude to her infront of house guests (so i've heard from inside information)

 

[Lena]

Originally posted by As You Like It@Mar 26th, 2004 - 1:43 am
For the first time, ever, I have to agree with Acid's assessment of a woman.

Donnatella Versace is scary. Her designs and style are garish and trashy and she herself needs to hire a personal stylist, stat. That ballglove tan and the bleached-and-ironed hair need to go.

. She always looks such a mess and she projects herself so thoroughly over her collections that there's this lingering aura of 'ho emanating from the label.

I think Versace's day has passed, though, style-wise. The label was always about glitz, excess, and vulgarity, even before Gianni was murdered. 15-20 years ago, conspicuous consumption was the byword. Today, maybe not so much. While there is a luxe market, obviously, it is not so much a driving force behind the rest of the apparel industry. In 1984, everyone wanted to look like Dynasty. Even the lower-range clothing suppliers like Sears and Penneys were selling wide shoulderpads and jewel tones. Today, the lower range markets are much plainer and more restrained than most of the luxe markets. Most of us proles wear khakis, cords, plain bluejeans, polo shirts, tee-shirts, plain button-downs, and sweaters to our office-grunt jobs. We leave the printed-chiffon Chloe to those lilies of the field to whom this sort of thing is marketed.

absolutely agree, much more on the Dynasty era

as for doc Martin's they are dead cool asYouLikeIt

 

[ignitioned32]

Originally posted by Acid@Mar 25th, 2004 - 3:46 pm
i hope allegra can do something to revive the versace label

donatella is a BAD BAD BAD influence on versace
spending WAY too much money on celebrity promotion and using herself as a versace girl

no wonder nobody wants to buy versace......just look at old don, enough to put any punter off. as for the furniature even elton sold all of his

the current menswear collection couldnt be worse......terrible terrible fit, tacky attention to detail and CHEAP quality

Ditto

Donatella thinks way too highly of herself.. anyone read her 10 Questions in Time?

 

[Lena]

clueless here igni, please do share Donatella's replies if possible,
she's always quite entertaining

 

[ignitioned32]

Q. Who personifies the Versace image today?
A. Me. A woman with a career who has personality, intelligence, and who knows the world-someone like Burberry CEO Rose Marie Bravo, who doesn't wear Versace but she should. I also love Madeleine Albright. She has always impressed me. She's not beautiful; she doesn't have a great body; but she has a lot of charisma and a brain.

 

[ignitioned32]

Another one ...

Q. Could the Versace brand continue without you someday?
A. Well, I work with a staff, but Versace works because there is nobody like me, if I say so myself! Without me, it's impossible. The brand is associated with me so...

 

[Lena]

ahhhhhahahhahaha i can always trust Donatella for a good laugh
the Allbright quote had me practically on the floor (mailing it to friends now)

thanks you so much igni

 

[ignitioned32]

Originally posted by Lena@Mar 26th, 2004 - 8:17 am
ahhhhhahahhahaha i can always trust Donatella for a good laugh
the Allbright quote had me practically on the floor (mailing it to friends now)

thanks you so much igni

I know

Anything 4 U guys

 

[beiby]

Originally posted by Lena+Mar 26th, 2004 - 2:44 am--><div class='quotetop'>QUOTE(Lena @ Mar 26th, 2004 - 2:44 am)</div><div class='quotemain'> <!--QuoteBegin-Erzébeth@Mar 26th, 2004 - 12:38 am
she's not on good terms with her daughter? hmm.. just never expected that.

Allegra has some kind of a strange obsession with food and Donatella can be very rude to her infront of house guests (so i've heard from inside information) [/b][/quote]
I have always been under the impression that Allegra had/have anorexia or bulimia?

 

[Lena]

Originally posted by beiby+Mar 26th, 2004 - 4:01 pm--><div class='quotetop'>QUOTE(beiby @ Mar 26th, 2004 - 4:01 pm)</div><div class='quotemain'>

Originally posted by Lena@Mar 26th, 2004 - 2:44 am
<!--QuoteBegin-Erzébeth

@Mar 26th, 2004 - 12:38 am
she's not on good terms with her daughter? hmm.. just never expected that.

Allegra has some kind of a strange obsession with food and Donatella can be very rude to her infront of house guests (so i've heard from inside information)

I have always been under the impression that Allegra had/have anorexia or bulimia? [/b][/quote]
thats what i've heard too, more towards bulimia i think
and Donatella seems not to be too supportive to her