Tom Ford and De Sole to Leave Gucci

Gucci’s creative director Tom Ford and CEO Domenico De Sole announced that they will not renew their contracts with the luxury goods maker after they expire at the end of April 2004.

The two announced the news yesterday in a joint statement together with Gucci main shareholder French retailer Pinault-Printemps-Redoute.

De Sole and Ford were the two driving forces behind the resurrection of Gucci from the brink of bankruptcy back to a leading position financially as well as in the eyes of buyers around the world.

The two said they will remain in their posts until April 30, 2004 and ensure a smooth transition into the hands of their respective successors. “I will continue until my departure to devote my energies to our company, whose prospects in our view have never been more promising,” says De Sole.

It is not clear why the two are leaving, but rumors over disagreements on salaries have been circulating for some time. PPR has formed a committee headed by PPR CEO Serge Weinberg to select their replacements.

Gucci and PPR were only willing to say, “Intensive efforts by the parties did not result in an agreement satisfactory to all concerned”.

Last year De Sole was paid €2.31 million ($2.6 million) and 42-year-old Ford €5.51 million ($6.28 million) and each of them holds over two million options of Gucci stock.