The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Hong Kong billionaire brothers Victor and William Fung have reached out to prospective buyers as they look to sell their stake in the 192-year-old Belgian luxury bag brand, Delvaux, according to a Bloomberg report.
The brothers are working with advisers on a sale that could value Delvaux at between $500 million and $600 million, according to unidentified sources cited by the report.
Victor and William Fung acquired the stake together with Singapore state investment company Temasek Holdings in a 2011 deal, giving the two parties majority control of the company.
Deliberations are ongoing and the Fungs could decide to keep their stake in the business, according to the report. Representative for Fung Group and Delvaux had no immediate comment.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.