Roberto Cavalli said it has made arrangements to move its Cavalli Class diffusion line to another manufacturer following financial difficulties at Dressing, which renewed its license for the collection in March 2013.
A representative for Dressing, which also manufactures the collections of Roberta Scarpa, Scervino Street and Plein Sud, confirmed Dressing is going out of business.
“The next step is filing a petition for a composition with creditors at the court,” said the spokeswoman, citing a “lack of liquidity” as the main source of the company’s financial woes.
She noted that Dressing started suffering at the end of 2013 because of the recession of both the Russian and Italian markets. At that point, the company urgently needed to find a new investor, and although Dubai-based MBG Group initially approached Dressing, the manufacturer proceeded to enter advanced negotiations with Saudi Arabian Ajlan Group.
“In July, we made a capital increase to enable the investments of the new partner, but the agreement with Ajlan has never been finalized,” she said.
Roberto Cavalli said Monday it has negotiated an agreement with another manufacturer who would take over production of Cavalli Class beginning with the spring collection.
The Cavalli company directly operates 28 Cavalli Class stores around the world.
As reported, Cavalli, who tapped consultancy Bain & Co. to restructure his company, has signed a letter of intent to sell a 60 percent stake in the firm to VTB Capital, according to market sources, a deal expected to be completed next month.