China’s Fosun group is set to acquire a majority stake in struggling French fashion house Lanvin, Reuters reports, citing sources familiar with the matter.
Fosun, which owns French leisure group Club Med and a stake in Italian luxury menswear firm Caruso, had been vying with Qatari investment fund Mayhoola, the owner of Italy’s Valentino, for control of Lanvin.
Now it appears that the Chinese conglomerate has won the race, according to the report.
“It was close, but Fosun finally got it,” a source told Reuters, confirming an earlier report by industry news site Fashion Network.
Another said Fosun was the highest bidder.
Lanvin, founded in 1889, has long been associated with Parisian chic but it has hit a rough patch after the surprise departure in 2015 of star designer Alber Elbaz, who had revived the storied label.
Lanvin is currently 75-percent controlled by Taiwan-based media magnate Shaw-Lan Wang.
The fashion house had said in early November that Wang would inject more money into the firm, but by December Lanvin said it was looking at other solutions that did not involve a capital increase.
Fosun would invest more than 100 million euro (about US$123 million) in Lanvin as part of the deal, Fashion Network reported on Monday, citing a source with knowledge of the transaction.
Wang would retain a minority stake in the business, according to the industry news site.
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