Luxury Brand Versace to Shut Down Japan Stores

Gianni VersaceIn a surprising move, Italian luxury powerhouse Gianni Versace SpA has announced intentions to close its Japan locations.  It seems the high-end fashion leader and industry presence is indulging in a makeover of sorts.  Sorry, could not help it.

The company informed that it is revamping its business strategy, and that the three boutiques in Japan no longer represent the brand image.  Gianni Versace SpA wishes to rebrand its image and begin anew with a clean slate.

This succinct business decision comes on the heels of a large slump in sales, a decline that could be attributed to the economic downturn.  Sales were approximately $17.7 million this past year compared to $45.4 million four years ago.

The Italian label isn’t the only luxury clothing brand to close stores in Japan, U.K. brand French Connection has also announced its plans to close all 21 of its Japanese boutiques over the next few months. 

These are all surprise moves in the world of high-end luxury moguls.  It seems everyone is cutting expenses recently.  Let’s just hope the economy continues to show signs of improvement, and that luxury cars and exotic rental cars are not the next to take a hit.

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