Roberto Cavalli has still not decided if he really wants to sell 30% of his company to investors. The deal was on, then it was off and now it seems to be on again.
Much like a modern-day Hamlet, Roberto Cavalli is weighed down by his own dilemma: to sell or not to sell?
While only a week ago the designer said he was "not so sure [he] wanted to sell in the end," a spokesman for Clessidra SGR SpA said Wednesday that Cavalli has signed a letter of intent with the Milan-based private equity fund for the sale of a minority stake in the house. A deal could be finalized by the end of September, said the spokesman. However, he declined to comment on the terms of the agreement.
The designer did not return calls seeking comment, but a Cavalli spokeswoman said Clessidra and the designer are negotiating the sale of a 30 percent stake in the company. Previous reports pinned the stake at 20 percent.
The deal with Clessidra would help Cavalli develop his business without turning to banks — which is important in light of short-term debt of 21 million euros, or $30.8 million, Roberto Cavalli SpA has with several banks. The company's debt has grown from 9.1 million euros, or $12.4 million, at the end of 2007, according to the company's balance sheet obtained by WWD. Dollar figures are converted from euros at average exchange rates for the periods to which they refer.
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The arrival of Clessidra may lead to the appointment of a chief executive officer, and the buzz here is that a roster of potential candidates to the post include Michele Norsa, ceo of Salvatore Ferragamo; Gian Giacomo Ferraris, ceo of Jil Sander; Stefano Sassi, ceo of Valentino Fashion Group, and Giancarlo Di Risio, who is expected to leave Versace soon. A source said the latter may "make sense" given Di Risio's past role as Ittierre’s ceo and contacts with Cavalli.
It's clear that Cavalli is not thrilled about giving up any part of his company. But if doesn't get private investors, he will need bank loans and that may be even less attractive to him.
