WWD has reported that a judge is expected to rule on the deal to approve the sale of Roberto Cavalli to Damac. After the deal is approved a share purchase agreement would have to be signed. An announcement regarding the deal is expected in the coming days.
Damac is a Dubai-based property developer. Damac and Cavalli CEO Gian Giacomo have a close relationship, so he's expected to stay on as CEO. Damac was long expected to be the company most likely to buy Cavalli. Competing offers were reportedly submitted from OTB and Bluestar Alliance.
While Damac might be a property company the acquisition of Cavalli makes perfect sense for them. They have a five star hotel project in the works, and now they want to build Just Cavalli villas in Dubai.
In March, Cavalli said they were entering restructuring plan with the Court of Milan so they could continue to operate under Italy's composition of creditors law. In the filing the company requested 120 days to prepare the restructuring plan and find a buyer. This was followed by the North American arm ceasing all operations and the exit of creative director Paul Surridge.
Damac's profile in the fashion game is about to be upped, and with billions of dollars of capital at their disposal they could potentially acquire other retail brands or luxury goods. For now, Cavalli looks to be saved and has a future.photo: via Roberto Cavalli Facebook page