Roberto Cavalli was acquired by the Dubai real estate group Damac
Will the new owner manage to get the Italian brand out of the crisis of the last few years?
Fashion
July 17th, 2019
July 17th, 2019
The news comes from WWD: Roberto Cavalli has a new owner.
Now, 100% of the company will be controlled by the Damac Properties Group of Hussain Sajwani. According to rumours, the company, classified by Forbes as the fourth richest Arab company in the world with equity of $4.1 billion dollars, has purchased the Italian brand for about 160 million euros, signing an agreement that should include a capital increase of about 65 million euros and the payment of all creditors. Sajwani's interest in Cavalli seems to have started after the collaboration to create design rooms for the luxurious Aykon Hotel, whose construction is expected to be completed in 2023. The sale, however, has yet to be approved by the Court of Milan. The company Roberto Cavalli will have to reach an agreement with its creditors and submit it to the judge within August 3rd. It is only in September when the sentence is pronounced, that the transfer of the shares to the new owner will become effective.
The Tuscan company has been in a difficult situation for years. Far from the success and splendour of the 90s and early 200s, since 2007 Cavalli began to talk about the sale, but only in 2012, the crisis was revealed. A crisis caused by a series of factors including the loss of appeal of the collections, a significant drop in sales, a corporate structure too expensive. All exacerbated by a general slowdown in the luxury market. In May 2015 the private equity fund Clessidra of Claudio Sposito acquired 90% of the capital of thMaisonon (the remaining 10% remained with Roberto Cavalli) for about 390 million euros, but the problems remained. The last four years have been characterized by various changes in management and in creative directors, the last one, Paul Surridge left his job last March. Now it's Damac's turn to try and bring back a brand that in the 70s and 90s had a worldwide success thanks to the style created by Roberto Cavalli, an innovator with his printed denim and animal prints, loved by international stars who have always worn his creations.
