Italy's Cavalli rescued by Dubai's Damac chairman

This post was originally published on this site
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEFAR0Y3_L.jpg

MILAN/DUBAI (Reuters) – Italian fashion house Roberto Cavalli was bought on Thursday by Hussain Sajwani, the chairman of Dubai’s Damac Properties (DU:), the companies said, ending a long sale process.

The Florence-based group, founded by designer Roberto Cavalli in the early 1970s and famed for its animal prints, had been struggling for years to relaunch its sales and gain visibility in an industry that is increasingly dominated by large cash-rich conglomerates.

Damac’s Sajwani bought Cavalli through his private investment company Vision Investments, part of the DICO Group, which owns luxury resorts and hotels and shopping malls, a statement said.

DICO Group said the deal was a significant step in the group’s strategy and was an evolution of a partnership signed back in 2017, under which Cavalli would develop the interiors for some luxury hotels.

DICO said it would ensure the stability of Cavalli’s management.

Italian private equity firm Clessidra took over Cavalli in 2015 in a bid to turn it around, but after two years started looking for a new investor as the fund holding the stake was close to its statutory investment limit and there was no sign of a recovery by the group, sources said at the time.

In March, the fashion house asked for creditor protection in order to make the sale process easier and it later entered a debt restructuring agreement.

In June, five potential investors emerged to rescue the fashion house, including Dubai’s Damac, Italy’s Diesel-owner OTB and U.S. brand management company Bluestar Alliance, sources said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment