Double desertion hits Gucci

Mr Ford helped rescue an ailing brand

The two most important men at luxury-goods giant Gucci, chief executive Domenico De Sole and designer Tom Ford, are to leave after failing to agree new contracts with owner Pinault Printemps Redoute (PPR).

Shares in both firms fell sharply on the news, as Mr De Sole and Mr Ford were seen as the saviours of Gucci, which came close to bankruptcy during the 1990s.

The two had insisted that they would only stay at Gucci beyond 2004 if PPR gave them full autonomy.

PPR bought a stake in Gucci in 1999 in partnership with Mr De Sole, and has since increased its stake to 70%.

But the French retailer was believed keen to absorb the Italian firm, something Mr De Sole wanted to avoid.

Silver lining?

Not all analysts were convinced that the departures would be a catastrophe for PPR, however.

Under Mr De Sole, Gucci has gone on a shopping spree, giving it a wide range of brands beyond the core products overseen by Mr Ford.

Gucci now employs a range of fashion talent including Alexander McQueen and Stella McCartney, and its own-brand products account for just 60% of revenues.