Donatella Versace, one of fashion’s most influential designers, is stepping down as chief creative officer of Versace after nearly three decades at the helm of the iconic brand founded by her late brother, Gianni Versace.

The decision, announced by Capri Holdings on Thursday, comes at a pivotal moment, with reports indicating that Prada is nearing a deal to acquire Versace for €1.5 billion ($1.6 billion).

Stepping into the role as Versace’s new chief creative officer is Dario Vitale, former Design and Image Director at Miu Miu, a brand under the Prada Group. His appointment will take effect on 1 April.

Meanwhile, Donatella, 69, will transition into the role of Chief Brand Ambassador for Versace.

“It has been the greatest honor of my life to carry on my brother Gianni’s legacy. He was the true genius, but I hope I have some of his spirit and tenacity,” Donatella said in a statement. She also expressed excitement about the brand’s future under Vitale’s leadership, adding, “I am thrilled that Dario Vitale will be joining us and excited to see Versace through new eyes.”

The timing of Donatella’s departure is notable, as Prada is reportedly finalizing its acquisition of Versace. Analysts believe the leadership change could strengthen the brand’s position ahead of a potential deal.

At the time of stepping down, Donatella turned to her social media to share some of the beautiful highlights of her career with Versace and captioned it: "I hope I’ve made you proud so far," she wrote.

Donatella’s exit is the latest in a series of high-profile designer departures in the luxury fashion industry, as brands adapt to slowing demand in China and inflation-conscious shoppers. Earlier this year, Sabato De Sarno stepped down as Gucci’s design chief after less than two years.

Known for her bold and provocative aesthetic, Donatella helped define Versace’s modern identity, leveraging celebrity connections to maintain the brand’s cultural relevance.

However, in contrast, Miu Miu—where incoming creative chief Dario Vitale previously worked—has gained traction with a more understated and minimalist aesthetic.

Financially, Versace has faced challenges. The brand reported a 6.6% revenue decline to $1.03 billion for the fiscal year ending March 2024, with further declines expected in 2025 before a projected recovery in 2027.

Founded in Milan in 1978 by Gianni Versace, the brand was acquired by Michael Kors (now Capri Holdings) in 2018 for €1.8 billion ($1.87 billion). The Versace family received €150 million in Capri shares as part of the deal.