Roberto Cavalli moves to safeguard operations as sale negotiations continue
today Mar 29, 2019
Following the news of the departure of its creative director Paul Surridge, troubled Italian luxury house Roberto Cavalli announced on Friday that it has decided to file for composition with its creditors (concordato preventivo in continuità) in Milan as it continues discussions with potential investors and buyers.
"Through this request, the company intends to utilize a well-defined legal mechanism arranged by the legislator to manage and overcome critical phases that could also lead to the suspension of some activities in foreign countries," the brand explained in a press release.
The Court of Milan will now examine the company’s request and will establish a timeframe during which the Roberto Cavalli brand will have to maintain an "open dialogue" with relevant authorities and other concerned parties as it works out its plans moving forward.
Acquired by Italian investment fund Clessidra in April 2015, Roberto Cavalli has since undergone a comprehensive rehaul under CEO Gian Giacomo Ferraris, who was appointed in 2016 and tasked with relaunching the stagnating Tuscan brand. Surridge was named as creative director the following year.
Attempts to turn the label’s fortunes around, however, have proved to be insufficient, with one source cited by Reuters blaming underinvestment in marketing and store redesigns.
The situation surrounding the sale of the luxury fashion house has been growing increasingly complicated over the last few weeks, with unions having voiced their concern about the uncertain future of the company’s 270 employees.
It now looks like US investment firm Bluestar Alliance – owner of Bebe, Catherine Malandrino, Tahari and Brookstone, among other brands – is the frontrunner to take over the company, following reports that German designer Philipp Plein, who had initially expressed interest in the acquisition, is no longer looking to pursue the purchase.
Roberto Cavalli, expects to achieve revenues of 155 million euros in 2019, has not specified the number of parties with which it is currently conducting discussions.
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