Luxury menswear label Pal Zileri is to open flagship stores in Europe and the US, after Arafa Holding, owner of menswear chain Suits You, pumped €25.3 million (£22.6m) into the Italian business.
Egyptian manufacturer Arafa Holding bought at 35% stake in Forall Confezioni, parent company of Pal Zileri and its younger, contemporary brand Lab by Pal Zileri.
Arafa Holding, which acquired Suits You owner Speciality Retail Group earlier this year, already manufactures for Pal Zileri, and said it was the right moment to sign a “favourable deal”.
Pal Zileri has two London stores, as well as a concession in London’s Harvey Nichols. It will open three more concessions in the department store’s Edinburgh, Leeds and Manchester branches. It also has about 50 wholesale accounts in the UK and Republic of Ireland via distributor Austin Agencies.
Arafa Holding said the cash injection would be used to open Pal Zileri flagship stores in Europe, the US, Asia and the Middle East.
Arafa Holding chairman Alaa Arafa said: “The deal is an important milestone on our effort to build into a global powerhouse in the fashion industry.”
The rest of Forall Confezioni is owned by the Miola and Barizza families. Forall Confezioni had a turnover of €136m (£121.6m) for the year to December 31, and EBITDA of €10.4m (£9.3m).
Pal Zileri’s UK agent Stuart Austin said the deal was likely to boost the brand’s global profile. He said: “There has been a long-term relationship between Arafa Holding and Pal Zileri. Arafa might be planning more stores but the market has changed now. We’re looking to consolidate our distribution at the moment, but more flagship stores will boost the brand’s profile, especially in the US.”