by Deborah Ball
However, by the start of 2009, the crisis began to weigh more heavily on Versace. In the first three months of the year, sales fell by 13 percent—hit in part by the bankruptcy of ITR, which stopped paying Versace royalties on its jeans line. Versace was still profitable in the first quarter and sales picked up in the spring, but by then, Donatella was convinced that the house needed a new leader—one who would take orders from the family, instead of giving them. With several years of solid collections and steady management of the atelier under her belt, Donatella felt more confident than ever. By then, she and Santo agreed that a slate of decisions made by Di Risio—for example, large investments in the accessories business and his plan to open new franchises—were the wrong responses to such a serious crisis. Di Risio argued that he was cutting costs quickly in reaction to the fall in sales, while the new stores, particularly in China, were important for future growth. But the family felt that didn’t go far enough, and now that they were free of the pressure from the banks—the debt was well under control—the family could reassert itself for the first time in five years.
Since coming into her stake, Allegra had been a largely passive presence in the house, hewing closely to the advice of her lawyer, Michele Carpinelli, and Marco Salomoni, a Versace board member with long experience in the fashion business. She diligently read the reports that Di Risio sent her on the developments at her company, but she virtually never attended board meetings. By early 2009, Allegra began spending a bit more time in Milan and in her mother’s atelier, although by then New York had become home, where she continued her studies. As the sales figures for the first months of the year reached her, she began to agree with her mother and uncle that it was time for fresh blood. While the pressure of such a change might have driven the family apart in the past, it now united Santo, Allegra, and Donatella. At the end of March, the family decided to hire Bain & Co., a leading consulting firm, to come up with a new plan to address the dire market. At that point, Di Risio understood that it was time to leave. He tendered his resignation in early June. A week later, the house hired Gian Giacomo Ferraris, the fifty-one-year-old chief executive of Jil Sander.
Even with a new chief executive, at some point, the Versace family will face difficult choices about what kind of future will best ensure the company’s enduring success and preserve its legacy. It can remain a niche player, running the risk of becoming irrelevant as other houses gradually crowd it out. It is too small to go public, so if it wants to grow, the family will have to consider selling out to a bigger rival such as LVMH or Gucci or to a deep-pocketed investor such as a private equity fund. Either way, the family would have little choice but to give up control. During the 2007 boom, when houses such as Roberto Cavalli had considered going public, investment banks had again proposed selling a piece of Versace to private equity or hedge-fund investors. But the family had declined. Indeed, as 2009 unfolded, Versace’s weakness became dangerously evident. In autumn, Ferraris announced he expected the house to lose 30 million euros for the year, while sales were likely to fall by nearly 20 percent, the lowest level the brand has ever seen. To stanch the red ink, the new CEO laid off a quarter of Versace’s employees and shut its stores in Japan, one of the world’s biggest luxury markets.
As a result, in 2009, Versace finds itself once again at the mercy of its founding family’s dynamics. And, as before, much hangs on the choices that Allegra will make in the coming years. Her health remains a private challenge and a corporate uncertainty. In early 2009, Allegra began spending more time in Milan and took up a desk in her mother’s atelier.
Once, when Allegra was very young, she was perched on the desk of her beloved uncle as he gave an interview to a journalist. The reporter, charmed by the sunny child, asked her, “Do you want to be a model when you grow up?”
“No, I want to be a designer!” Allegra retorted immediately, much to the delight of Gianni. But now Allegra is a sober twenty-three-year-old woman, and her wishes for her uncle’s company—and her own future—remain a mystery. She could choose to sell the house, freeing herself of an enormous emotional and business burden, in order to strike a path of her own. But that would surely leave her mother, at fifty-four, without a job. Alternatively, Allegra could maintain the status quo, hoping the house will catch a new wave of growth and collecting the meager dividends in the meantime.
The Versace story, in its drama and pathos, almost defies belief, a fairy tale that dissolved into a long, protracted horror story with the firing of two inexplicable gunshots. A hard-fought recovery has partly redeemed the years of woe and grief. But no matter what Allegra decides, the house will always be tinged with the sad knowledge that things will never be the same. Gianni Versace changed fashion forever. More than ten years after his death, one wonders whether his creation—for all its precarious recovery—is destined to become a relic of the past or a force for the future in fashion. The fate of the storied house rests as heavily as ever on the thin shoulders of Gianni’s beloved principessa.
Acknowledgments
I am indebted to scores of people who helped make this book possible, generously granting me their time and sharing with me their memories of an extraordinary man and the legacy he left. While I never had the privilege of meeting Gianni Versace, he became a growing source of inspiration over the course of this project as I learned more of his uncommon talent, determination, and humanity.
This book is based primarily on my firsthand reporting, consisting of 220 interviews with friends, family, former lovers, co-workers, rivals, and business partners of the Versaces, as well as on my review of three decades of financial documents, historical footage of runway shows, police reports, and public records in Milan, New York, Calabria, and Miami.
My greatest debt of gratitude surely goes to Santo and Donatella Versace. This is the first book to enjoy the help of the Versace family. In a world that depends on spinning a dream, fashion houses are fiercer than most businesses in protecting their images, and the Versaces are no exception. The drama and pathos of the Versaces’ personal and professional lives have made them understandably reticent to cooperate with authors in the past, wary of how their story would be treated. Yet, once they agreed to help, they answered my many questions with grace and patience, reliving not just the good times, but recounting for me a long terrible period they would just as soon forget. Their devotion and deep affection for their brother and his memory came through clearly in every one of my long interviews with them.
Donatella is all too often caricatured in the media, but the picture that friends, colleagues, and family painted for me is of a warm, loving, if at times troubled woman. She has wrestled with her demons and is admirably open about her shortcomings. I hope this book offers the world a more nuanced portrait that goes beyond the spitfire blonde in the Versace evening dress.
Over the course of many hours of interviews, Santo offered me a treasure trove of memories, facts, and details that enormously enriched my portrait of the business side of the story, in particular the early days when he and his brother ventured north to Milan to set up shop. Santo has now moved on to a career in Italian politics, but his passion for his brother’s house is evident even today. I hope I have done justice to his story.
Antonio D’Amico, Gianni’s longtime partner, deserves a special thanks for graciously answering hours of questions, some delving into the most painful moments of his life. His insights into Gianni’s life and personality were invaluable in writing this book.
Virtually the only person who declined to speak with me was Allegra Versace, despite my repeated pleas. I regret that she chose not to participate in this book, as her voice would have further enriched the complicated story of her family and the company that she now controls. It might also have gone far toward chasing away the speculation that continues to swirl around the delicate young woman.
I owe a special thanks to Isabelle Harvie Watt and Deirdre McCready, as well as to Cristina Crolli and Lisa Hellman in the Versace press offic
e for putting up with nearly two years of pestering for interviews, invitations to fashion shows, historical material, and insight into the company and the family. They most certainly must have tired of my incessant requests, but nonetheless met each one of them with good humor. Stefania Alberti, Santo’s loyal assistant, cheerfully helped me navigate her boss’s busy schedule.
Giancarlo Di Risio took time out of his busy schedule to sit for several interviews, recounting in detail his work in restoring Versace’s health.
Santo and Donatella opened the door to a large number of friends and family who were instrumental in understanding the roots of this storied clan. Childhood friends in Calabria lovingly described the happy early family life of the siblings and their remarkable parents, in particular their mother. I would first thank Nora Macheda, the woman who helped raise the Versace siblings and who welcomed me into the family home to entrust me with her recollections of the clan. Enzo Crupi, Donatella’s high school sweetheart, played my personal tour guide to Reggio. Anna Candela, a dear friend of Gianni’s, offered me valuable insight into his childhood and teenage years. Other family and friends who helped include Tita Versace, Carlo Casile, Bruno De Robertis, Antonella Freno, Donatella Benedetto, and Anna Camerata.
This book would not have been possible without the unstinting cooperation of many people with firsthand knowledge of the House of Versace since its birth. Many people reached back in time to recall details of the early days of working with Gianni. I would like to thank particularly Franca Biagini, Gianni’s beloved premiere, who welcomed me into her home and fed me a wonderful Tuscan meal while she shared fond memories of her years at Versace. Patrizia Cucco, Gianni’s devoted personal assistant, lived up to her reputation as the house’s living historian. Franco Lussana, a dear family friend and one of Versace’s first employees, recalled the very first days when a fresh-faced Gianni landed in Milan. Wanda Galtrucco, a dear friend of Gianni, painted a fond picture of the designer. Donatella Girombelli recalled the period when she and her husband gave Gianni one of his big breaks. David Brown offered me priceless recollections of the supermodel era.
Other current and former longtime Versace employees answered my many questions about the history of the house, including Nunzio Palamara, Angelo Azzena, Paola Marletta, Anna Cernuschi, Stefano Guerriero, Bruno Gianesi, Brian Atwood, Jurgen Oeltjenbruns, Luca Callegari, Jason Weisenfeld, Andrea Tremolada, Enrico Genevois, Anna Caputo, Patrick Guadagno, Emanuela Schmeidler, and Loredana Nastro.
Other business associates filled out the history of the house: Mario Mangano, Walter Ragazzi, Giuseppe Menta, Riccardo Guy, Roberto Devorik, Nando Miglio, Dawn Mello, Carole White, Ellin Saltzman, Barbara Vitti, Donato De Santis, Anne Marie Paltsou, Mario Boselli, Ron Frasch, Gio Moretti, Wallace Tutt, Julie Mannion, Sergio Salerni, Andrea Gottleib Vizcarrondo, Paolo Tomei, Carolyn Mahboubi, Agostino Guardamagna, Enrico Fantini, Donatella Ratti, Renato Molteni, Paola Terenghi, Joan Kaner, Nicoletta Santoro, Joe McKenna, Brana Wolf, Lori Goldstein, Norma Stevens, Phyllis Walters, Alan Rohwer, and Francois Nars.
In Miami, I would like to thank Larry Rivero, Irene Marie, Rick Moeser, Tara Solomon, Merle Weiss, Tom Austin, Bruce Orosz, Lee Schrager, Louis Canales, Frank Scottolini, and the press office of Casa Casuarina. A very warm thanks goes to Denise Burne Fein, who offered her valuable insights into the workings of the Meadows. Paola Bottelli, the doyenne of the fashion business at Italian newspaper II Sole 24 Ore, was enormously generous with her insights into the Milan fashion scene. I would also like to thank Fran Curtis, Elton John’s publicist.
The press offices of the FBI and the Miami Beach Police Department helped me pull together the extensive files on Gianni’s murder, which consisted of nearly a thousand pages. Antonella Barberis and Pietro Marzo at Milan’s Chamber of Commerce pulled three decades of Versace balance sheets for me.
I would also like to extend a special thanks to Anna Wintour and Naomi Campbell, who entrusted me with their recollections of Gianni and his siblings.
I would also like to thank Lucia Mari, Patrick Jephson, Pietro Jovane Scott, Vincenzo Finizzola, Rita Airaghi, Stefano Dominella, Beppe Modenese, Logan Bentley, Rosemary Ferrari, Bob Kreiger, Noris Morano, Concetta Lanciaux, Vicki Woods, Wayne Scot Lukas, Jonathan Sidhu, Stu Woo, Albert Reed, Kevin Crawford, Ellin Levar, Claudia Buccellati, Giuseppe Mondani, Mary Lou Luther, Robert Burke, Ruggero Pegna, Patrick O’Connell, Arne Glimcher, Carla Ling, Dickie Arbiter, Gianfranco Manfredi, Pino Bertone, Michela Bertone, Gisella Borioli, and the Diocese of Milan.
Dozens of other people, fearful of offending the Versace family, chose to speak with me on a non-for-attribution basis. I wish to thank them for the time and trust they invested in me and this book.
A heartfelt appreciation goes to a number of people at the Wall Street Journal, my professional home for the last twelve years. This book simply would not have been possible had it not been for the extraordinary training that the Wall Street Journal provides its journalists. I have had the great good fortune to work with a group of talented editors and fellow reporters who, in the face of enormous challenges, remain committed to a level of excellence that is increasingly rare in today’s media world.
I would especially like to thank Michael Williams, Emily Nelson, and Nik Deogun, for graciously supporting this project, including granting me an extensive leave to complete it. Rose Ellen D’Angelo, the Journal’s books-projects editor, has been supportive of this book from the moment of its inception. Steve Stecklow offered valuable feedback on the book’s early chapters. I would also like to thank Alan Murray, Alix Freedman, Karen Pensiero, and Robert Thomson.
I owe a special word for Teri Agins, a dear friend and the most selfless colleague one could ever hope for. Teri is rightfully a legend in the fashion world for her smart, sassy, and incisive coverage of a business that often eludes serious scrutiny. The End of Fashion, her landmark book on the fashion business, was an inspiration and guide well before I embarked on this adventure. From her sharp editing of my initial proposal to her unstinting support during the grueling process of reporting and writing this book, Teri bucked me up countless times when I felt overwhelmed with what I’d taken on.
I owe a special thanks to the team at Crown—John Mahaney, Tina Constable, and Jo Rodgers—who ferried this long project to completion. I would also like to express my gratitude to Milena Vercellino, a talented young Italian journalist who transcribed a number of interviews, helped me with valuable legwork during the early stages of the reporting and did a thorough fact-checking at the end that saved me from more than one embarrassing error. I am also indebted to David Groff for his elegant edit of my manuscript. He smoothed out many bumpy passages and fixed sections where I got lost in the weeds.
My agent, Jane Dystel, has done more hand-holding in the last three years than she probably ever bargained for. Her deep experience in the industry as well as her unstinting support of this project helped me navigate more than one harrowing moment. Her business partner, Miriam Goderich, was invaluable in guiding this first-time author in crafting the initial proposal.
Finally, I owe special appreciation to my family and friends, who have borne a disproportionate share of the burden of this book. Friends in Boston, Milan, New York, and London have generously indulged my self-absorption with this project for many, many months. My mother, my three brothers, their families and our dear friend Pam McLeod endured my setting up camp—with my laptop and an endless load of notes piled high on the kitchen table—during family vacations and holidays.
Most of all, I wish to thank my husband, Fabrizio Mucci, who supported me through two long years of distractions, frustrations, complaints, and frequent absences. He lived literally surrounded by this project for far too long. He read my first proposal, patiently helped me sift through thirty years of Versace balance sheets and caught more than one error on Italian history and business. I will do my best to repay his patience in the days and years to come.
Milan, October 26, 2009
Notes
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one: “They’ve Shot Gianni”
1 Interview with Rita Airaghi, February 20, 2008.
2 Maer Roshan, “Surviving at the Top,” New York, December 15, 1997, p. 40.
3 Rody Mirri, It’s Your Song: Gianni Versace e Antonio D’Amico. Quindici Anni di Vita Insieme (Gussago: Societa’ Editrice Vannini, 2007), p. 111.
4 Minnie Gastel, Il mito Versace: Una biografia (Milan: Baldini Castoldi Dalai, 2007), p. 247.
5 Interview with Donato De Santis, May 20, 2008.
6 Renata Molho, Essere Armani: Una biografia (Milan: Baldini Castoldi Dalai, 2006), p. 168.
7 Andrea Lee, “The Emperor of Dreams,” New Yorker, July 28, 1997, p. 46.
8 Ibid., p. 42.
two: The Black Sheep
1 Interview with Tita Versace, March 18, 2008.
2 Interview with Santo Versace, February 13, 2008.
3 Interview with Tita Versace, July 2008.
4 Luciano Gulli, “L’Utopia,” Il Giornale, February 8, 2008.
5 Interview with Santo Versace, February 13, 2008.
6 Mario Guarino, Versace Versus Versace: La Biographia di Gianni Versace (Rome: Edizioni Libreria Croce di Fabio Croce, 2003), p. 15.
7 Interview with Gianni Versace, La Stampa, July 29, 1994.
