Donatella Versace Out as Creative Director of the Milan Fashion House, in a Shakeup by US Owner

Donatella Versace has been replaced as creative director of the fashion house founded by her late brother Gianni Versace, assuming the new role of chief brand ambassador, Versace's U.S. owner Capri Holdings announced on Thursday.

Versace will be replaced by Dario Vitale, who most recently was design director at the Miu Miu brand owned by the Prada Group. His appointment is effective on April 1.

The creative shift comes amid speculation that the Prada Group is in talks to buy Versace from Capri Holdings, which paid 2 billion euros (currently $2.2 billion) for the fashion house in 2018. The U.S. group also owns Michael Kors and Jimmy Choo.

Miuccia Prada acknowledged interest in the brand on the sidelines of Milan Fashion Week last month, while Versace made no comment at what was to be her last runway show. Versace, 69, took over as creative director in 1997, after her brother's murder in Miami.

Capri Holding's statement made no mention of any plans to sell Versace, but the arrival of a designer from Miu Miu is only likely to fuel speculation of a possible deal.

Versace CEO John D. Idol said in a statement that the creative shift was "part of a thoughtful succession plan for Versace." He called Vitale "a strong leader,'' and expressed confidence that "his talent and vision will be instrumental to Versace's future growth."

As chief brand ambassador, Versace "will continue to champion the Versace brand and its values,'' Idol said.

Versace said she was "thrilled" as a champion of the next generation of designers that Vitale would join Versace and that she was "excited'' to see the brand her brother founded in 1978 "through new eyes."

"It has been the greatest honor of my life to carry on my brother Gianni's legacy. He was the true genius, but I hope to have some of his spirit and tenacity,'' she said in a statement. "In my new role as chief brand ambassador, I will remain Versace's most passionate supporter. Versace is in my DNA and always in my heart.''

Versace represented 20% of Capri Holdings 2024 revenue of 5.2 billion euros. Capri recently laid out strategic plans to rebalance the Versace portfolio to return the brand to its more daring roots, increase sales of accessories and win back entry-level consumers put off by a post-pandemic focus on higher net-worth clients.