Making top of news this evening is the latest in potential high end designer houses in trouble. This time it’s Versace. A label that came to prominence under Gianni Versace and headed by his sister Donatella after his death in 1997. WSJ reports:

“Still, Versace’s latest plan is a clear sign that the global cutback in spending on luxury goods is hitting small family-owned companies the hardest. Last week, Prada SpA began calling people back to full-time work after cutting some work days for 210 of its 3,000 Italian employees, according to a spokesman.

Chanel, owned by the Wertheimer family, slashed 200 jobs, or 10% of its factory work force, last December”

Gian Giacomo Ferraris Chief Executive of Versace since July also said that the reason for the cuts is that the company plans to outsource its production, distribution and logistics and focus on the designs.

Thankfully the fashion house of Christian Lacroix narrowly averted bankruptsy with finding a backer, so let’s hope Versace survives this restructuring as well.