Renzo Rosso, a prominent Italian fashion entrepreneur known for founding the iconic brand Diesel, is one of the three key players eyeing a bid for the struggling luxury label, Roberto Cavalli. The company, which has been grappling with financial challenges and a tight cash flow, made the decision to file for bankruptcy protection in a move to reorganize its debt and attract new investors.
Having been predominantly owned by the private equity firm Clessidra since 2015, Roberto Cavalli has experienced a string of financial losses since 2014, with only a brief respite in 2015 when the company posted profits. In an effort to secure a fresh injection of capital, Clessidra engaged the services of Rothschild to scout for potential investors. However, plans fell through after Clessidra declined to infuse more funds into the beleaguered company earlier this year.
Following Rothschild’s outreach to 80 potential investors, three parties have emerged as prospective buyers. Bluestar, a U.S.-based holding company, has tabled an offer to purchase Roberto Cavalli as part of a comprehensive debt restructuring plan. Meanwhile, Renzo Rosso’s OTB group, which owns Diesel, is also keen on investing in Cavalli alongside the existing shareholders. In addition, German fashion designer Philipp Plein has indicated a possible interest in joining the negotiations after achieving a settlement with creditors.
Currently, Roberto Cavalli is in the midst of winding down its operations in the United States, having shuttered its retail outlets in the country. With the future of the luxury brand hanging in the balance, potential investors are deliberating on the best course of action to steer the iconic label towards a prosperous future.
For more information on the fashion industry and investment opportunities in luxury brands, check out these relevant articles: Top Fashion Investment Opportunities for 2022 and Diesel Owner OTB Explores Roberto Cavalli Acquisition.
