Clessidra-backed Cavalli files for bankruptcy

In the meantime, the company's US-based subsidiary, ArtFashion, will file for Chapter 7 bankruptcy in the US this week, according to press reports. The company is closing down all its stores in the US and dismissing its US employees. In addition, several corporate executives, including US CEO Salvatore Tramuto, resigned last week.

Italian GP Clessidra bought a 90% stake in Roberto Cavalli from the founder in 2015 in a deal that valued the company at around €390m, equal to 16x its 2014 EBITDA. Private equity firm L-GAM and Hong Kong-based Chow Tai Fook Enterprises acquired minority stakes in the business.

Clessidra mandated Rothschild to sell a minority stake in the Italian fashion house in October 2018. The sale attracted interest from Swiss fashion group Philipp Plein, Blue Skye investment fund and US brand management conglomerate Bluestar Alliance.

Subsequently, Bluestar remained the only bidder with a €100m offer, according to press reports published in March.

Headquartered in Florence and established in 1970, Roberto Cavalli is a fashion brand that specialises in designing luxury clothing, leather goods, watches, jewellery and eyewear.

In addition to its main Roberto Cavalli brand, the company also sells its products under the Just Cavalli, Cavalli Class and Roberto Cavalli Junior brands. The company generated negative EBITDA of €7.1m, negative operating profit of €33.6m and revenues of €152.4m in 2017.

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• Topics
• Southern Europe
• Consumer
• Clessidra Capital Partners
• Italy
• United States