Designer Roberto Cavalli has agreed to sell a minority stake in his namesake fashion house to Italian private-equity fund Clessidra SGR SpA. The terms state Clessidra could buy 30 percent of the company and begin searching for an executive to run the fashion house, according to The Wall Street Journal.
Troubled economic times have forced the designer to rethink his business. In February, clothing manufacturer IT Holding SpA, which is licensed to manufacture Cavalli's Just Cavalli line, entered bankruptcy protection, leaving the company without royalty payments.
A week ago, the designer was reconsidering selling a stake in his fashion house because of disagreements over the price of the stake, corporate governance and management issues, a company spokesperson told Dow Jones.