FILE PHOTO: Italian luxury fashion house Salvatore Ferragamo’s logo is seen at a store in Zurich, Switzerland October 26, 2016. REUTERS/Arnd Wiegmann
October 21, 2020
By Pamela Barbaglia and Claudia Cristoferi
LONDON/MILAN (Reuters) – The family owners of Italian fashion house Salvatore Ferragamo <SFER.MI> have held informal discussions with financial investors to sell a minority stake within their holding firm, as they seek to turn around the luxury brand and cope with the fallout of COVID-19, five sources told Reuters.
The company’s chairman Ferruccio Ferragamo, son of founder Salvatore who is now leading the shoe dynasty, held the discussions sometime after the summer, offering a stake of about 20% in the holding vehicle that controls the Milan-listed business, banking and private equity sources said, speaking on condition of anonymity as the matter is confidential.
A spokeswoman for the company – which has a market value of 2 billion euros ($2.37 billion) – denied that the Ferragamo family planned to sell the stake.
The sources told Reuters that the family is still in the preliminary stages of testing market appetite and that a deal might face resistance from investors since the family is not willing to give away any governance control.
(Reporting by Pamela Barbaglia in London and Claudia Cristoferi in Milan;Editing by Elaine Hardcastle)
