MILAN, Italy — OTB, the Italian fashion group chaired by Diesel founder Renzo Rosso, has taken a minority stake in Amiri, a Los Angeles-based luxury brand with a Californian, rock 'n' roll aesthetic. The label was founded by Mike Amiri in 2014 and has attracted a celebrity following. The terms of the deal were undisclosed.
“I am very excited,” OTB President Renzo Rosso told BoF. “Mike and I have known each other for two years. He’s very close to my mentality. He’s like me, a passionate entrepreneur, but unlike me he’s also a designer.” OTB, which stands for Only The Brave, owns Diesel, Maison Margiela, Marni, Viktor&Rolf and Paula Cademartori. The new partnership with Amiri is complementary, said Rosso.
“[Rosso’s] extraordinary experience and knowledge combined with our shared vision makes this a remarkable creative and commercial partnership,” Mike Amiri said in a statement.
Amiri is expected to generate $60 million in 2019. The new investment will help the brand to fuel growth, including the opening of its first standalone retail stores.
Per a wider plan announced in April, OTB is set to invest €200 million (about $223 million) over the next three years to fuel growth, including through M&A. The news of the Amiri deal comes soon after the group began negotiations with struggling Italian luxury brand Cavalli.
OTB consolidated revenues amounted to €1.4 billion last year, down 3.2 percent at constant exchange rates, impacted by the weak performance of Diesel in Europe and North America. The denim-maker filed for Chapter 11 protection in the United States earlier this year. “Diesel is a 40-year-old magic brand that needed maintenance,” said Rosso.