The worst kept secret in the fashion industry was that Roberto Cavalli was looking to sell his fashion house to the highest bidder. That was the plan. Plans changed according to Cavalli. In an interview with Il Sole 24 Ore newspaper Cavalli stated that he is “not selling the company…We haven’t reached the right moment yet for (a sale to private equity firms). At the same time, as I have said a thousand times, we don’t need” to sell. Indeed Cavalli has run a very profitable company over the years and his resurgent line has received rave reviews the past set of fashion weeks.
Several private equity firms were rumored to be in the running for Cavalli’s company including PG [TPG.UL], Candover and Doughty Hanson but decided to opt out of the bidding for the fashion house. Cavalli was looking for bids past the $800 to $900 million mark but with turmoil in the financial markets those figures have evaporated quickly. Cavalli may look to Middle Eastern investors and emerging asian markets where newly rich clients can help the brand broaden its reach. The designer stated that as of now, the brand is staying firmly put, but he may investigate the possibility of a sale later in 2009.