Milan: Government-appointed advisers have accepted an offer for the Gianfranco Ferre fashion group from the Dubai-based Paris Group.
A statement confirming the sale by the bankrupt holding company that controls Ferre did not cite terms or the price of the transaction.
IT Holding said on Tuesday that the offer needs approval of the Economic Development Ministry and unions. Media reports have put the price at €100 million (Dh502.94 million) over three years.
IT Holding went into bankruptcy protection two years ago, following the 2007 death of founder Gianfranco Ferre.
The Paris Group manages boutiques and is a franchising partner in the region of fashion designers, including Ferre, Versace, Hugo Boss and others, according to its website.
Founded in 1978 by the late Ferre, the debt-laden maison, one of Milan's top designer names, became one of the casualties of the financial crisis in 2009 which sapped demand for luxury goods.
Known for its "architectural" style and overstated elegance, Ferre has been put on sale by special commissioners after being admitted to bankruptcy protection in 2009.
Paris Group plans to invest an initial €25 million to pay down debts and open 50 top-line Ferre stores worldwide, a source said. It also agreed to raise its initial offer and keep a higher number of jobs.
Foreign hands
US private equity fund Prodos Capital Management missed a deadline in December to buy the fashion house after failing to fulfil a commercial condition.
Parent company IT Holding, which is also under extraordinary administration, was not available to comment.
Ferre is one of the few big Italian fashion names to fall into foreign hands in a mainly family-run industry.
Past cases include French group PPR's Gucci and Italian fashion brand Valentino, which is controlled by private equity group Permira.
