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In 1979, Aldo developed the wholesale gucci outlet, or GAC, intended to bolster the sales for the Gucci Perfumes sector, which his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens, which were priced at considerably lower points than the other items in the company’s accessories catalogue.
Aldo relegated control of Perfumes to his son Roberto in an effort to weaken Rodolfo’s control of the overall operations of the company.Though the Gucci shoes was well received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few years, the Perfumes division began outselling the Accessories division.
The newly-founded wholesaling business had brought the once-exclusive brand to over a thousand stores in the United States alone with the GAC line, deteriorating the brand’s standing with fashionable customers. “In the 1960s and 1970s,” writes Vanity Fair editor Graydon Carter, “Gucci had been at the pinnacle of chic, thanks to icons such as Audrey Hepburn, Grace Kelly, and Jacqueline Onassis. But by the 1980s, Gucci had lost its appeal, becoming a tacky airport brand.”Soon, cheap knockoffs of Gucci wares had appeared on the market, further tarnishing the Gucci name.
Meanwhile, infighting was taking its toll on the operations of the company back in Italy: Rodolfo and Aldo squabbled over the Perfumes division, of which Rodolfo controlled a meager 20% stake. Meanwhile, when Paolo Gucci, Aldo’s son, proposed a cheaper version of the brand called ‘gucci store‘in 1983 he fell out with the family. There was a boardroom quarrel that ended in a fistfight, and Paolo was reportedly knocked senseless by a telephone answering machine in the hand of one of his brothers. In return he reported his own father for tax evasion to the United States revenue, and Aldo was convicted and imprisoned on the testimony of his own son. By now, the outrageous headlines of gossip magazines generated as much publicity for Gucci as its designs.Rodolfo’s death in 1983 caused a major shakeup in the company when he left his 50% stake in Gucci to his son, Maurizio Gucci.
Maurizio allied with Aldo’s son Paolo to gain control of the Board of Directors and established the Gucci Licensing division in the Netherlands for this purpose. Following the decision, the rest of the family left the company except for Aldo Grandson Uberto that was the only young Gucci generation involved in the family business. Maurizio sought to bury the fighting that had torn the company and his family apart and turned to talent outside of the company for Gucci’s future.
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