Fashion house Cavalli "confident it can seal sale"

Fashion house Cavalli "confident it can seal sale"
Just Cavalli Fall/Winter 2015-16 fashion show.

Italian fashion house Roberto Cavalli said on Thursday it was confident talks with private equity firm Clessidra for the sale of a majority stake would be concluded as scheduled.

Cavalli and Clessidra in December announced they had started exclusive talks and had until March to reach an accord.

An agreement is likely to be struck around the end of March, said Cavalli's chief executive, Daniele Corvasce.

"Things are moving fast but we're not there just yet," he said, speaking on the sidelines of the Just Cavalli Autumn/Winter 2015 women's collection show.

"First auditors need to put their seal on our 2014 financial statements," he told Reuters, adding that Clessidra had started its due diligence process only on Jan. 10.

Cavalli earlier on Thursday reported a 4.2 per cent rise in revenue last year to 209.4 million euros (S$323 million).

Earnings before interest, tax, depreciation and amortisation fell last year to around 15 million euros from 22.4 million in 2013, hit by one-off items linked to problems at companies that had a licensing agreement with Cavalli.

The Tuscan label had 190 directly-owned shops at the end of 2014 after 11 new openings in the year which helped push direct retail sales up 6 per cent.

A deal with Clessidra would help Cavalli expand its retail network. The two parties tried back in 2009 to agree on the sale of a 30 per cent stake but talks were broken off.

High valuations have several times proven to be a stumbling block to finding a new investor in the fashion brand famous for its bold animal prints.

More about

Purchase this article for republication.



Your daily good stuff - AsiaOne stories delivered straight to your inbox
By signing up, you agree to our Privacy policy and Terms and Conditions.