Sunday, January 18, 2009

Recession causes Cavalli to sell.



It seems that the economic downturn is affecting everyone even the big players in the fashion industry. Everyone is becoming a budget tai-tai these days.

After months of speculation, Roberto Cavalli is said to be on the verge of signing over up to 20 per cent of his fashion empire to Milan-based private equity firm Clessidra SGR SpA.

"I had to think hard about it over the last few weeks and I believe that it is the right way to ride the recovery after this moment of international economic-financial crisis," the designer, who called off an auction for the stake in July due to the unstable financial climate, said in an interview with Italian daily Il Sole 24 Ore earlier this week - though there has been no official comment on an impending deal.

Cavalli added in the interview that he hopes to list the company on the stock market in 3 to 4 years. His second line, Just Cavalli, is under license to IT Holding SpA and the arrangement is not expected to be affected by a new deal.

Whether or not Cavalli is set to sell part of the empire, we just have to wait and see. However, rumours has it that there are serious conversations going on about it. Let's all just hope for the better!


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