It is not just the dresses on the Versace catwalk that are for sale this Milan fashion week, but Versace itself. One of the most glamorous names in fashion is up for grabs, with Prada, its longtime rival for Milan bragging rights, thought to be close to purchasing the company. The prospect of a sale raises the question of whether Donatella, designer since the death of her brother in 1997, will remain as creative lead.

Versace without Donatella is hard to imagine. She remains a hands-on designer, and the lightning rod through which Versace’s energy is conducted. “Everyone should have a little Versace attitude,” she said before this show, held under the iron shelter of a historic tram depot in Milan where, as a concession to guest’s skimpy outfits, the benches were heated.

“Our house codes are recognised all over the world, and they make us so strong,” she added. Nonetheless, references in this collection to autumn/winter 1997, the last collection Gianni designed before his death – a distinctive Sex Pistols punk fusion of black and daffodil yellow, oily leathers and Roy Lichtenstein brights - fuelled rumours of a possible departure.

“The first great post-Freudian fashion designer” was how Richard Martin, curator of an exhibition of his work in 1992, once described Gianni Versace. “He’s thinking about sex.” Donatella’s aesthetic is equally bedroom-coded, with crystal mesh dresses that shimmer and melt like hot candle wax.

In less tumultuous times, the biggest concern for Versace this weekend would be which actors might wear Versace gowns on Sunday’s Oscars red carpet. (Cillian Murphy, who recently starred in an advertising campaign, was seated next to Anna Wintour in the front row.) But with American group Capri Holdings looking to offload the label it bought for $2.1bn in 2018, a lot more is at stake. Backstage after her show on Thursday, Miuccia Prada told reporters the Versace deal was “on everyone’s table”. A potential deal with Prada, or with Diesel founder Renzo Rosso, would bring the baroque exuberance of Versace back into Italian ownership.

Versace has suffered with slowing sales, recently reporting a 15% year-on-year decline. As a fashion house without a strong line in perennials such as luggage or cashmere, Versace is in a precarious position at a time when consumers are tightening their belts. It remains a powerful brand with a strong and recognisable image. But Donatella, who turns 70 this year and received a substantial payout in the 2018 deal, could decide to walk away if not enamoured with Versace’s next owner.

The front row presence of Christopher Kane, Donatella’s British protege once employed at the now defunct Versus brand, prompted speculation of a possible joint-ticket designer arrangement, similar to that of Miuccia Prada and Raf Simons, her co-designer for the past five years.