Private equity firm Prodos Capital Management failed to meet a key condition of its acquisition of Italian fashion house Gianfranco Ferre, Reuters reported. As part of the November buyout, Prodos was to signed a commercial agreement with Samsung by December 26, Reuters said, adding that Prodos has yet to reach an agreement with any industrial partner.
(Reuters) – U.S. private equity fund Prodos Capital Management has failed to fulfill a key condition to buy Italian fashion house Gianfranco Ferre by a Dec. 26 deadline, two sources with knowledge of the situation said.
In November, Prodos obtained clearance to buy the indebted fashion house, which was put under administration of government appointed commissioners to protect it from bankruptcy.
One condition to complete the sale agreement was that Prodos sign a commercial agreement with South Korea’s Samsung.
“Prodos has not reached any agreement with an industrial partner and Samsung has pulled out,” one of the two sources told Reuters on Monday on condition of anonymity.
Ferre’s three special commissioners will check with Italy’s industry ministry on which steps are needed to sell the company. IT Holding ITH.MI, which is also under extraordinary administration, owns the company.
Founded in 1978 by late Italian designer Gianfranco Ferre, the fashion house known for its “architectural” suits became one of the casualties of the financial crisis last year. (Reporting by Cristina Carlevaro. Writing by Danilo Masoni. Editing by Robert MacMillan)