Kering and Stella McCartney separation reportedly well under way

While no official announcement has been made, the Kering and Stella McCartney divorce seems to be in motion, with the buy back of the company in serious discussions, according to media reports.

Kering currently owns a 50 percent stake in the business, which the new owner would be taking over.

Kering and McCartney entered a joint partnership in 2001, which each party owning 50 per cent of the company.

According to Reuters: "The Stella McCartney brand is one of Kering's smaller luxury brands within the 'other luxury' division and as such is most likely somewhat dilutive to profitability."

"Kering does not break out earnings for the brand, but it is a much smaller contributor to sales than labels like Gucci - its biggest earnings driver - or Saint Laurent and Bottega Veneta.

A potential disposal would come as Kering prepares to spin-off German sportswear label Puma to its own shareholders, a move welcomed by analysts as it focuses more squarely on its high-margin luxury brands."

Photo credit: Stella McCartney website