Giancarlo Di Risio, now former CEO of the famous fashion house Gianni Versace SpA, has resigned over disagreements with Donatella Versace regarding the way the company should proceed to cut costs during this economic downturn.

According to various insider sources, as sales in the luxury goods sector are on the wane, he suggested to Mrs. Versace to simplify her designs and cut down on promotional spendings to lower prices to which the strong and exuberant charater that Mrs. Versace is disagreed.

Recruited in 2004 to pull the company out of a bad financial momentum started in 1997, when the company's founder Gianni Versace was found murdered in his country house.

As leaked by The Wall Street Journal at the beginning of last month, Mr. Di Risio and Versace's board of executives, among whom Donatella, are parting ways in decent terms through a "mutual decision to close their professional relationship".

So this recession will have to be faced by Versace with a new leader.

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