A brother shot dead in a foreign land. A sister who died young. A daughter with a serious eating disorder. A broken marriage. A drug dependency ending in rehab. Donatella Versace has had a lot to contend with in her life. Now, though, 10 years after Gianni Versace’s murder in Miami, she has beaten her demons and come out on top.

It is testament to the strength of will that is clearly part of the Versace DNA. Look at Gianni, who clawed his way up the ladder to become a world-class designer. At the height of his career in the mid1990s, his company was racking up more than £500m in sales each year. Then came the murder and it looked as if the Versace fashion empire was over.

But Donatella had as much willpower as her brother – a cause of many a sibling clash when she worked as his assistant at Versace prêt à porter. “He always made the decisions on that,” she admits. “But I designed Versus, a younger line, which was entirely my own vision. I had total control. I didn’t even show him what we were doing until the last minute. It worked well, but it doesn’t change the fact that I actually learnt everything I know from him. We cooperated in life as well as design.”

We are talking in Donatella’s apartment in Milan’s swanky Via Gesu.

It’s the day after the gala ballet at La Scala that she created with the French choreographer Maurice Béjart in homage to Gianni’s life and talents. “Gianni collaborated with Maurice on several ballets,” Donatella says. “We decided to tell a story about him through dance, an art he loved. Last night’s performance was not only important for my brother’s memory, but also for me. It brought a sense of relief, a sense that, after all the heartbreak and unhappiness of the past 10 years, we finally had closure.”

At first, the transition from design assistant to creative director at Versace caused problems for Donatella. Trying to take in the enormity of what had happened in Miami, as well as dealing with her daughter, Allegra, now a recovering anorexic, who was traumatised by her favourite uncle’s sudden death, it is amazing that she could concentrate on the business at all. Not surprisingly, during the first five years, Donatella struggled in her new role. Sales slumped, and in 2003, she was forced to close the Versace couture line. A year later, Donatella went into a clinic for treatment for cocaine addiction.

But the Versace willpower prevailed, and she emerged, not only cured but determined to reestablish the brand. “Discovering my own identity as a designer has taken time,” she admits. “Everybody seemed to be waiting for me to turn into Gianni. It was difficult to get people to understand the message that I’m not him. Yes, I worshipped him. Yes, he taught me everything. Yes, I was in love with his creative talent. But now, it’s Donatella. So stop comparing us. I made a few mistakes – more than a few, actually – but I forgave myself because he would have forgiven me. Others didn’t. Some mistakes are necessary, but in my position, they were always open and public. Gianni’s fashion was risky and dangerous. My approach is different – I believe you should seduce people and always have them leaving a show wanting more.”

She pauses, then adds: “Do you know what I find so frustrating? When Gianni was alive, many people in Italy did not like what he designed, yet, after his death, they started saying what a genius he was. There were so many false, hypocritical comments, and so many people who seemed to resent the fact that I was trying to keep alive the company he had set up, which I had worked for. Gianni had a particular vision, but he was of another era. To bring that vision up to date, I had to give it another identity – my identity.”

She has done so successfully. The latest figures show annual revenue of more than £100m, with before-tax profits of about £1m. Versus has now gone, as has the couture, but with new design teams in place, Donatella believes the future of Versace is exciting. “We are an established luxury company, and it is not just in clothes, but also in luxury goods that I see a great evolution coming. We are planning 12 more Versace hotels, which I will be very involved in, and I am working on interiors for private jets. I have a new, clear vision for everything – my life, my work, my projects.”

And, of course, pleasure. Once a rock chick, always a rock chick, and Donatella enjoys throwing parties – her open-air soirees are the highlight of Milan fashion week. She is always happy to hop on a plane to attend the big bashes of the fashion year, such as Oscar night and the Metropolitan Museum of Art’s annual fundraising dinner in New York. With that blonde hair, she was made for a red-carpet entrance, although it is music that really excites her, and later this month, she will be entertaining her friends in her box at Fashion Rocks.

Although devoted to her two children, she is far from the traditional Italian mother. “I have absolutely no passion for cooking,” she laughs. Yet she needs her family ties, and admits that holidays away from the pressures of the fashion world are essential. “All year round, I am surrounded by people and on show. I don’t have a problem with being public property, but I need breathing space to recharge. For holidays, I go as far away from Italy as possible. I read, watch movies, listen to music. And it’s marvellous. But I’m still Donatella. Even at the beach, I put on my make-up, and I always wear heels at night. Being Donatella Versace is a full-time occupation.”

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