Bally owner buys Derek Lam

Derek Lam, the designer womenswear brand, has sold a majority stake in its business to Labelux Group, the luxury goods investment group which owns footwear business Bally.

Details of the deal were not disclosed but Labelux plans to turn Derek Lam into a luxury global brand, beginning with the opening of its first standalone store in Crosby Street in New York next year.

This is likely to be followed by more stores around the world. Labelux said it would also look to expand Derek Lam's wholesale distribution in existing markets.

It has stockists in 35 countries including the UK, where it is sold by designer indie Matches, department store Selfridges and etailer Net-a-Porter.

Lam founded his label in 2003, after a period heading up design at US luxury label Michael Kors. He is also creative director of footwear and accessories brand Tod's, which holds the licence for Derek Lam footwear and handbags. Labelux said it was likely to look at more licensing deals for the brand.

Labelux is based in Vienna and owned by the Benckiser family, who also own beauty firm Coty. Labelux bought Bally for €375 million (£299.4m) earlier this year and also owns jewel-lery brand Solange Azagury-Partridge. Labelux plans to acquire more luxury brands.