>> After Dana Thomas's best-selling book Deluxe: How Luxury Lost Its Luster came out in August 2007, she wasn't invited to Louis Vuitton's show the following October — Vuitton chief executive Yves Carcelle was unhappy with how she had portrayed LVMH head Bernard Arnault.  Given the article she just wrote for Newsweek, "The Tragic Decline of the House of Versace," she may be uninvited from Versace's show next.

Just last week, Donatella expressed that she expected Versace to weather the economy, despite having to lay off a quarter of its workforce. Thomas doesn't seem as convinced, suggesting that perhaps it's time for Versace to move past its family-centric setup:

"Many in the fashion industry believe it's time for the brand to continue without Versace family involvement — and some suggest that the family is starting to accept this idea too. Last year, Santo [Versace, Donatella's brother and former CEO of the company] was elected to the Italian Parliament. Allegra [Beck Versace, Donatella's daughter and 50 percent company heir] has been attending Brown University and has said her dream is to become an actress. And will Donatella remain at the helm? 'Maybe,' says [an anonymous] former Versace executive. 'Then again, maybe not.' Which, after a decade of turmoil, may be the best thing for the company after all."

Gianni Versace wanted the brand out of the family hands »

>> Versace is definitely feeling the economic crunch, completely pulling out of Japan, where it's had a presence since 1981, and announcing impending layoffs of over a quarter of its current workforce.  But Donatella Versace aims to keep up appearances — she sponsored the Whitney Museum Art Gala in New York two weeks ago, jetted off days later to Rio de Janeiro for a Fashion Rocks event, and has just named Georgia May Jagger, Jerry Hall and Mick Jagger's 17-year-old daughter, the face of her Spring 2010 campaign, as photographed by Mario Testino. She also refuses to take off her stilettos, except for at the gym.

The New York Times's Eric Wilson caught up with her when she was in New York, staying under the name "Mrs. Montez" in a suite at the Waldorf Towers.  When she first took over Versace, she says, “it was not easy to believe in myself or the future. Everyone was looking at me like a savior, and I had to have this image of this powerful strong woman, which I am not.”

"You have to face the truth" »

>> Versace Layoffs Coming to Help House Gain Back Profitability —Ever since former Versace CEO Giancarlo di Risio left the brand in June after clashing repeatedly with Donatella Versace, repositioning has been the order.  Versace announced earlier this month that it would close all stores in Japan, and now comes news that the brand will cut 350 jobs worldwide by the middle of next year after forecasting a loss in 2009 and a flat 2010.  The layoffs aim to help the house ensure profitability by 2011. [WWD]

>> Versus, the young Versace line originally launched in 1989 and designed by Donatella Versace under her brother Gianni's supervision before it was discontinued in 2005, is being revived — no surprises here, considering that Donatella said in March of the line: "It was the first collection that my brother Gianni let me work on, on my own, so it's very precious to me."

She asked Christopher Kane to produce a capsule collection of crystal-studded Versus shoes and bags, which was rolled out in February, and for Spring 2010, the brand is on track for a full-fledged "dynamic presentation" of Versus ready-to-wear during Milan Fashion Week, according to a spokeswoman.

The line, which targets "Young Hollywood," or women between 20 and 30, is currently being sold in the new Versus showroom in Milan. “It’s very rock ’n’ roll and sexy,” Donatella Versace told WWD. “The collection reflects Versus’ DNA and is aimed at young people who want to dress with their own style but like to evolve and break new ground.”

>> Donatella Versace Admits She Loves Playing the Diva — Christopher Kane, in the midst of interviewing Donatella Versace, asks her if she enjoys the celebrity-driven aspect of fashion: "It’s a love-hate relationship. I would definitely prefer not to be obliged to attend certain events and parties, but I must . . . On the other hand, I have to admit that I do actually enjoy acting up to the 'diva' role that I have been allotted: after all, I am a bit of a diva, aren’t I?" [Times UK]

>> First Look: Atelier Versace Fall 2009 —Donatella Versace showed her Fall 2009 Atelier Versace couture collection by private appointment during couture week in July — and Style.com's Derek Blasberg reported of the line's latest edition: "[It's] all focused on the (super tiny) waist, handmade beadery. Really fancy that big blue one, a steal at 100k EUROS."  Last night, Diane Kruger wore a Fall 2009 Atelier Versace dress to the Los Angeles premiere of Inglourious Basterds, giving us a first glimpse of the collection; Versace's sketch of the dress is at Red Carpet Fashion Awards. [Red Carpet Fashion Awards]   

>> Donatella Versace Likes Shopping at Anthropologie and Abercrombie & Fitch —Donatella Versace is currently in New York to celebrate daughter Allegra's birthday and, as she blogged, "I need[ed] a change of scenery — somewhere to get some inspiration by taking in a wholly different culture." Furthermore, she writes, "I stay in the same suite in the same hotel every time I visit, and customize it with some Versace home cushions and scented candles and lots of flowers . . .  I like to indulge myself at . . . Anthropologie at 375 West Broadway, which has an eclectic, vintage feel that is very different than what we have in Milan. I will also buy my son Daniel some jeans at Abercrombie & Fitch on Fifth Avenue and visit Barneys, which I like because it is just what a Manhattan department store should be." [The Moment]