This is how it happened; Due to weak sales (even before the luxury bubble burst) Versace took control of their distribution in Japan in an attempt to compete with Gucci Group and Giorgio Armani. What happened next – Versace closed down their few remaining stores and operations in the summer of 2009. To continue the story – Versace under CEO Gian Giacomo Ferraris announces Versace plans to return to Japan in 2011, but this time on a wholesale basis. Versace still has a strong brand name so with new and improved merchandise planning, pricing, positioning (make nice with the department stores) and strong Japanese management; Versace may have a second chance where many brands do not. Buona fortuna Versace.