They are wanting to break even, and to do so are trying all sorts of tricks in the books of fashion retail. Their plan is to break even by 2011, and that’s just about 11 months left. They are planning on cutting down on costs so as to improve their revenue.
Gian Giacomo Ferraris the CEO said that they had come to a difficult conclusion that they would have to cut down on 25% of their workforce as well as close down some of their US press offices and as few Milan accessories outlets.
So that they counteract the closures and counter acts they Versace is now launching a collection that is completely low prices and will be 30-40% cheaper than the normal main line rates. Another line called Versus that is designed by Christopher Kane will also be launched soon after as their main line collection.
Versace seems be following in Giorgio Armani’s footsteps and also plans on a hotel residence to be opened in Dubai.
Another thing they are planning on getting rid off from their backs is those ridiculously priced cell phones that they had launched a few months ago. They seem to be desperate and are trying to do everything possible to get to where they want.