French fashion house Cacharel has ended its licensing agreement with Italian manufacturer Aeffe.
The mutual decision means that the spring 13 collection will be the last to be produced by Aeffe.
The deal has seen Aeffe produce a women’s ready to wear range for Cacharel over the past three years.
Aeffe, which has license deals with brands including Emanuel Ungaro, Alberta Ferretti and Moschino, said the ending of this agreement would reduce sales for 2013 by €2m (£1.6m), but said margins would be impacted positively by around €500,000.
Cacharel is to host a news conference tomorrow regarding the organisation of the company.