Salvatore Ferragamo, the luxury brand adored for its fashionable wears and flair of European sophistication, has called off plans to sell a minority stake in the company.
Instead, Ferragamo is reportedly working to overhaul the management team and hire independent board members to replace an outfit currently dominated by family and friends. And maybe even a few button men.
Like many other luxury goods companies, Ferragamo has suffered through the pandemic with the prolonged closure of boutiques and the reality that no one needs $695 loafers. Gamo’s revenue dropped 39% during the first nine months of 2020.
Last year the Ferragomo family — which owns a 54% stake in the Milan listed company — explored selling a minority stake to raise capital. But according to the Financial Times, buyers were put off by the fact the family refused to relinquish control over the company’s governance.
Fresh Blood: Now that the notion of a sale has been taken off the table, Ferragamo is focusing on relaunching the brand with the help of a new management team:
Last week the company appointed former Goldman Sachs banker Claudio Costamagna to the board following the resignation of Giuseppe Anichini.
Contracts for Ferragamo’s creative director and chief executive, which will expire in the next few months, are unlikely to be renewed, according to several people familiar with the situation.
No comment from the Ferragamo family – because you obviously never tell anyone outside the family what you’re thinking.