UPDATED: Permira president Paolo Colonna has denied that the private equity house is seeking a sale of fashion house Valentino and declined to comment on a possible sale of Permira’s stake in designer label Proenza Schouler.
Permira bought a 45% stake in luxury label Proenza Schouler in 2007, just months after taking a 29.6% stake in the Valentino Fashion Group, which includes the Valentino, Hugo Boss and Malboro Classics luxury brands.
It is now rumoured that Permira is looking to cash in on its investment into Proenza Schouler and that it will also possibly seek a buyer for Valentino, while retaining its stake in Hugo Boss.
However, Colonna told WWD: “Valentino has zero debt now and we want to wait four or five years to create value because we are in no rush to sell and we can wait for better times,”
He added: “Valentino has had its ups and downs, but we’ve turned a corner now.”
He admitted that Valentino was being “courted” by the financial world, but added that he was “not even meeting with merchant banks.”
Permira bought its stake in Proenza Schouler for just $3.7m (£1.8m at the time). Reports at the time suggested that Proenza Schouler chief executive Shirley Cook, who along with Proenza Schouler’s designers Lazaro Hernandez and Jack McCollough retained 55% of the company, agreed to the deal on the understanding that Hernandez and McCollough would succeed Valentino’s founder Valentino Garavani as the head of his eponymous design house. Instead he was replaced by Gucci’s Alessandra Facchinetti.
It is likely that Permira is seeking a sale of Proenza Schouler following the growth in sales of the label’s leather goods line and continued positive reactions to its womenswear collections.