In an interview published last Sunday, Donatella Versace said that the Italian fashion house is reviewing bids for a minority stake. According to Italian business paper Il Sole 24 Ore, Versace said, "The Versace brand has an enormous potential. Our advisors are selecting an investor that will buy a minority stake through a capital hike. We are not selling. Being small is neither good nor convenient. We must grow."
The family owned fashion brand was established in 1978 by Donatella's brother, the late Gianni Versace. The company had engaged the services of Goldman Sachs and Intesa Sanpaolo's Banca Imi as advisers as far back as May 2012. The banks have drawn up a short list and a partner may be introduced by October, according to the news report.
Versace was quoted to have said, "Of course (we have received offers), but we are examining the quality of the investors and their capacity to support the plan for the coming years."
The Versace brand has been worn by icons such as Lady Gaga and Madonna. It is now preparing to bolster its balance sheet in order to fund expansion overseas before considering a public listing in the future.
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