One foreigner among 8 bids for Malo cashmere
today Apr 27, 2010
MILAN, April 26 (Reuters) - Italian cashmere brand Malo has attracted eight bids, seven of which are home-grown, a source with knowledge of the situation said, after the fashion line was put on offer by administrators of parent IT Holding (ITH.MI).
Among bidders to lodge non-binding offers on Monday 26 April was one foreign group, the source said, adding that one bid came from a private equity group, but did not say if this was Italian. Another source close to the situation said a consortium of more than 100 industrial creditors might join the private equity group in its bid.
A spokesman for IT Holding was not immediately reachable for comment.
Government-appointed commissioners are auctioning off Malo and IT Holding's other units, fashion brand Gianfranco Ferre and production unit Ittierre, which makes and distributes clothes for lines such as Just Cavalli and Galliano.
Bidders for Malo will have until May 27 to conduct due diligence. They will then decide whether to make a binding offer or pull out by June 3.
The Malo auction will be followed by that of Ferre, whose sale has received the green light by the industry ministry. The sale process is expected to kick off in the next few weeks.
Several fashion houses like Christian Lacroix in France and Mariella Burani Fashion Group (MBFG.MI) in Italy fell into financial difficulties last year, as the global crisis sapped demand for expensive clothes and accessories. (Reporting by Cristina Carlevaro, writing by Antonella Ciancio; Editing by Jon Loades-Carter)
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