Ferragamo family explores stake sale to drive Italian fashion brand revamp - sources

The company's chairman Ferruccio Ferragamo, son of founder Salvatore who is now leading the shoe dynasty

  
A model presents a creation from the Salvatore Ferragamo Autumn/Winter 2014 collection during Milan Fashion Week February 23, 2014.

A model presents a creation from the Salvatore Ferragamo Autumn/Winter 2014 collection during Milan Fashion Week February 23, 2014.

REUTERS/Alessandro Bianchi

LONDON/MILAN- The family owners of Italian fashion house Salvatore Ferragamo have held informal discussions with financial investors to sell a minority stake within their holding firm, as they seek to turn around the luxury brand and cope with the fallout of COVID-19, five sources told Reuters.

The company's chairman Ferruccio Ferragamo, son of founder Salvatore who is now leading the shoe dynasty, held the discussions sometime after the summer, offering a stake of about 20% in the holding vehicle that controls the Milan-listed business, banking and private equity sources said, speaking on condition of anonymity as the matter is confidential.

A spokeswoman for the company - which has a market value of 2 billion euros ($2.37 billion) - denied that the Ferragamo family planned to sell the stake.

The sources told Reuters that the family is still in the preliminary stages of testing market appetite and that a deal might face resistance from investors since the family is not willing to give away any governance control.

($1 = 0.8436 euros)

(Reporting by Pamela Barbaglia in London and Claudia Cristoferi in Milan;Editing by Elaine Hardcastle) ((pamela.barbaglia@thomsonreuters.com; +442075427723; Reuters Messaging: pamela.barbaglia.thomsonreuters.com@reuters.net))

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