Marzotto acquires Valentino

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The Valentino fashion house has been purchased this week by Marzotto, the Italian textile group that also owns the fashion arm of Hugo Boss. Marzotto said it would pay Eur35.6m ($31m) for Valentino, plus Eur204.4m ($177m) for its debt, to HdP, the industrial holding company that paid Eur310m ($270m) for Valentino four years ago. Marzotto will relaunch Valentino, which has plans to expand its network of airport stores, corners and other company-owned stores.

HdP had promised that Valentino would be the cornerstone of a luxury goods group to rival LVMH. Instead, the 42-year-old fashion house remained loss-making, reporting a net loss last year of Eur232m ($202m). Valentino's revenues last year rose 12% to Eur133m ($116m) as the company brought back various licences inhouse. HdP management had cut the Valentino licences to just a handful, but it failed to develop a retail strategy that would raise enough new revenues to replace the lost royalty income and reduce debts. Unilever has the Valentino fragrance licence.