Versace restructuring complete

Versace SpA confirmed it has reached agreement with the Italian unions to shed 26% of its workforce.

The 350 job losses will be spread across operations in Italy with the Accessories factory closing in Burago and the manufacture amalgamated at other sites, retaining an important revenue generator for the business (Accessories now account for 35% of revenue).

Drastic action was required to stem losses as the group is predicted to post a Euro 30 million loss for 2009 with sales down 19-20 percent at Euro 273 million.

This restructuring will hopefully kick-start a better year for the brand than 2009 when it parted company with its Chief Executive of 5 years and announced the closure of all stores in Japan at the end of October and an exit from the market. This exit should be temporary with new store openings planned for 2011 assuming the economy has recovered.