The renowned Italian fashion brand Salvatore Ferragamo, owned by the Ferragamo family, is reportedly contemplating the sale of a minority stake in their holding firm as they strive to revitalize the luxury brand amidst the challenges posed by the Covid-19 pandemic.

Chairman Ferruccio Ferragamo has reportedly engaged in informal discussions with financial investors regarding the potential sale, offering a stake of around 20% in the holding company that controls the company’s Milan-listed business. However, a spokesperson for Salvatore Ferragamo has denied these reports, stating that the family has no intention of selling their stake.

Sources indicate that the family is still in the early stages of assessing market interest, and potential resistance from investors may arise due to the family’s unwillingness to relinquish governance control. With a current market value of 2 billion euros ($2.37 billion), Salvatore Ferragamo has been grappling with the profound impact of the Covid-19 pandemic on the fashion industry. Lockdown measures and reduced consumer spending have resulted in a decline in sales, similar to many other luxury brands.

To navigate these challenges and redefine the brand, the Ferragamo family may explore various strategic options. While a stake sale could potentially infuse much-needed capital into the business, it remains uncertain whether the family will ultimately pursue this course of action. Salvatore Ferragamo, renowned for its craftsmanship and innovation in luxury shoes and accessories, boasts a global presence and operates in over 90 countries.

Moving forward, the Ferragamo family must carefully evaluate their options to ensure the enduring success of the brand in the ever-evolving fashion landscape.

Useful links:
1. Salvatore Ferragamo Official Website
2. Business of Fashion