‘Donatella’s been dethroned in essentially the most horrible means – by the boys who cannot wait to promote Versace to Prada’

When Donatella Versace’s older brother Gianni was murdered outside his Miami mansion in 1997, she made him a solemn vow.

Despite her horrendous grief, she would continue the flamboyant legacy that had made his fashion label one of the most famous – and distinctive – in the world.

And she more than fulfilled that promise. Over the last 28 years as Versace’s creative director – tentatively at first, and then with a bold confidence – she became one of the best-known women in luxury fashion.

But this week it was announced that the 69-year-old is to move into a different role at the company, as its ‘chief brand ambassador’.

That, however, is not the full story. Indeed, sources say the Italian fashion queen has been deliberately ousted in a plot to smooth the way for the brand to be bought by rival label Prada, after profits slumped during the pandemic.

Over the last 28 years as Versace’s creative director, Donatella Versace, has become one of the best-known women in luxury fashion

They say Versace’s chief executive, Emmanuel Gintzburger, and John D. Idol, boss of the label’s owners Capri Holdings, colluded to get rid of Donatella and replace her with Dario Vitale, a former design director for Miu Miu, so they can continue with a succession plan that she didn’t agree with. Even worse for Donatella, according to those who know her, she was purposefully kept out of the conversations about the future of the brand that bears her name.

It means she has not only lost the job she so loved, but has had to give up the promise she made to her late brother.

One fashion source told The Mail on Sunday: ‘She’s been dethroned in the most terrible way. She didn’t think she would die on this throne. But everyone is fighting over it when they don’t know what it means to be on it. The only person who does is Donatella but she has been kicked off. It has been vicious and upsetting.’

The source continues: ‘The men were looking to sell Versace quickly before things get any worse. The word around the business is that Emmanuel and John didn’t crack it and frankly, they wanted Donatella out so they could sell the company.’

None of this was apparent when Versace, founded in Milan in 1978 by Donatella and her brothers Santo and Gianni, made its highly polished announcement about Donatella’s future on Instagram on Thursday.

In a casual sleight of hand, Donatella was declared Versace’s new chief brand ambassador from April 1 – a far lesser role, according to fashion observers. ‘In her new role she will dedicate herself to the support of Versace’s philanthropic and charitable endeavours and remain an advocate for the brand globally,’ it enthused.

But behind the scenes, there has been little conviviality among Versace’s top brass.

I’m told ‘party lines’ had been drawn for some time between her and Idol and Gintzburger (who has earned the nickname ‘Nothingburger’ – US slang for someone who receives a lot of attention but has little significance – by some waspish industry insiders).

Donatella Versace’s older brother Gianni was murdered outside his Miami mansion in 1997. Pictured together

They say Versace’s chief executive, Emmanuel Gintzburger (pictured), and John D. Idol, boss of the label’s owners Capri Holdings, colluded to get rid of Donatella and replace her with Dario Vitale, a former design director for Miu Miu

A source said: ‘You were either Team Donatella or Team John and Emmanuel. She has been forced into an exit, which wouldn’t have happened if she was involved in the conversations. It’s so stupid, how can they do this to her?’

Another said that, rather than kick up a fuss, she has ‘dealt with her exit elegantly’, adding: ‘How she has done that is beyond me. She has been treated appallingly.’

The seeds of her exit were perhaps sown in 2018 when Capri Holdings, which also owns Jimmy Choo and Michael Kors, paid £1.64 billion for Versace. Donatella is said to have gone into the deal ‘with her eyes open’ and hoped it would create a succession plan that would protect the legacy of the Versace brand and that of her late brother. Since then, though, Versace’s profits slumped, partly as a result of the pandemic. Other labels also suffered but managed to bounce back.

In February, Capri had to admit there had been a double-digit drop in Versace’s sales over the previous quarter, which it blamed on poor strategic decisions.

A source said: ‘Those at the top have run out of excuses for the sales going down, they have waved the white flag. They want to sell before it gets any worse. Donatella wasn’t involved in any of this. It’s obvious what was going on but it’s so silly; she’s the one with the knowledge and the person who understood the concept and fought to grow Versace. Donatella has been consistent in putting the company and brand first.’

Indeed, it has been Donatella who has grafted to keep Versace relevant. With an unrivalled contacts book, she lured in young celebrities like rapper Lil Nas X and Korean K-pop stars to keep its reputation current. Chart-toppers from Taylor Swift and Beyonce to Dua Lipa and Sabrina Carpenter have also appeared for the label.

She attracts, and she continues to work with, Hollywood stars Angelina Jolie and Anne Hathaway, and music legends like Sir Elton John, Cher, Lady Gaga and Madonna.

Another feather in her haute couture cap is her popularity on social media – with 12 million followers, she is the most-followed fashion designer in the world. And as well as boasting the brand’s name, she is also arguably its face.

Donatella, in black, on the runway with supermodels (left to right) Claudia Schiffer, Naomi Campbell, Cindy Crawford and Helena Cristensen

‘There was a way to have done this that showed Donatella a bit of respect,’ a Versace source said.

The gears are now firmly in motion for a sale to Prada. On Friday it was reported Prada’s CEO, Andrea Guerra, had flown to New York to hold talks for the deal that would unite two of the biggest names in Italian fashion.

So what, then, for Versace’s future, and the bright prints synonymous with the brand and Donatella herself? Fashion insiders speculate it won’t be long before a rift appears between Idol and Gintzburger. But while that might bring a little giggle to Donatella, ultimately she is deeply saddened by her exit – as are her staff.

One said: ‘The masses at Versace have organically taken Donatella’s side. She has been so supportive to the younger members of staff and many love her family approach to Versace. She had a reputation for being a nice, good person, not at all cut-throat like some others are.