kimair
frozen
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from wwd...
Private equity strikes again.
Reig Capital Group is the new owner of the French fashion house Loris Azzaro and plans to open stores in key international markets and develop lucrative categories like footwear.
Based in Barcelona and London, Reig Capital acquired the firm from Com*pagnie Financiere Frey, which bought the brand in 2002 as part of a drive to expand its luxury division. Frey is best known for its Champagne, wine and real estate holdings.
Reig owns the Spanish jewelry brand Vasari, is a partner in the Manolo Blahnik franchised store in Madrid and owns and develops luxury hotels with W and Mandarin Oriental.
Terms of the Azzaro deal were not disclosed, but one source valued the deal at less than 20 million euros, or $25.6 million at current exchange.
WWD first reported that Azzaro was in play last January. Frey was advised by BNP Paribas in Paris.
"It's an iconic brand with a distinct style and timeless quality — and it has a lot of potential," said Sagra Maceira de Rosen, managing director of Reig's luxury and retail division and investment director of Reig Capital Luxury Partners, the group's private equity fund. "Luxury ready-to-wear will remain the core of the brand, but we'll continue to develop footwear and, eventually, possibly go into accessories. We're taking it step-by-step and really want to get a feel for the business."
Maceira de Rosen, previously a luxury and retail analyst at J.P. Morgan in London, confirmed the house would retain designer Vanessa Seward, who succeeded the house founder following his death in November 2003. With her glamorous and sparkling cocktail and evening dresses, Seward has generated strong buzz for the brand and attracted celebrity devotees such as Nicole Kidman and Penélope Cruz.
Maceira de Rosen said Reig intends to widen Az*zaro's rtw offering, which is now centered on high-priced occasion dressing. Cities such as L.A., London, Moscow and Hong Kong are considered targets for retail stores, "and we'll also be pushing the wholesale strategy," she said. "As we open stores and increase distribution, the collection will widen and grow.
"Our intention is to keep this investment for a very long time — it's not your usual private equity investment," she continued. "It's an iconic brand that we love, and the Reig family wants to keep it."
