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Versace Invests in New Stores

Brand to spend over $30 million on development in 2013.

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IN THE FUTURE: Versace is investing 25 million euros, or $33 million at current exchange, in development this year, mainly aimed at boosting its retail network, said the company’s chief executive officer Gian Giacomo Ferraris. The executive reiterated that the company is evaluating its growth opportunities, eight months after tapping Goldman Sachs and Banca IMI. “At the end of the yearlong mandate we will see whether we will further develop the company on our own, through an initial public listing or with a partner. In any case, the Versace family will not relinquish control,” said Ferraris.

In April, Versace reported 2012 group revenues of 408.7 million euros, or $523.1 million at average exchange, up 20 percent compared with 2011, and, commenting on the results, Ferraris said at the time there were no immediate plans to take Versace public or sell a stake. However, he did set a target for when that might happen: when the company hits sales of 500 million to 600 million euros, or $646.6 million to $776 million at current exchange.

Siblings Santo and Donatella Versace hold 30 and 20 percent stakes, respectively, and Donatella’s daughter, Allegra Versace Beck, owns 50 percent of the firm.

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