×
Published
Feb 11, 2014
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Forall Confezioni comes under Qatari control

Published
Feb 11, 2014

Italian menswear specialist Forall Confezioni, which manufactures for Pal Zileri, has sold a 65% stake in the company to Mayhoola for Investments, an investment vehicle backed the Qatari royal family. Financial details of the transaction have not been disclosed. For Mayhoola, the deal is not its first foray into Italian luxury, having taken a minority stake in label Valentino for 700 million euros in July 2012.

Photo: palzileri.com/it


Founded by Aronne Miola and Gianfranco Barizza in 1970 in Quinto Vicentino near to Venice, Forall Confezioni is reported to be worth 100 million euros according to sources in the local press.

Affected by the financial crisis in the country, Forall has been seeking a partner to help reposition the company in emerging markets and to reduce its debt which is at almost 45 million euros.

In 2012 the group generated turnover of 134 million euros with a net loss of 4 million.

Increased production costs in Italy put the company – which employs 850 people - in financial difficulty, a fact which it acknowledged in its company report: “Maintaining our Italian savoir-faire is becoming very difficult given huge strains on costs. It is essential that we improve productivity and efficiency.”

In 2008 Forall Confezioni sought out a partner to help the company enter new markets. Eygyptian funds Arafa Holding - very active in textile and distribution - came to the rescue and took a 35% stake in the company for 24 million euros.

The agreement offered Arafa Holding the option to buy out the Forall over the next five years, however investors decided to not take the option and sold the remaining 65% to Mayhoola for Investments.

Copyright © 2021 FashionNetwork.com All rights reserved.