Ferragamo sells Ungaro brand

Emanuel Ungaro said Thursday that Gruppo Ferragamo signed an agreement to sell 100 percent of the company to San Francisco-based high-tech entre pr eneur Asim Abdullah. Terms of the deal were not disclosed. Ungaro pr esident and chief executive officer Paolo Di Spirt, who will continue in his role, said Abdullah is pr epared to invest in the company and even relaunch the couture, possibly with a new designer. Di Spirt said the Ferragamos, who will continue to hold the Ungaro licenses for leather goods and fragrances, chose Abdullah over other suitors because of the financial commitments he was willing to make to the brand.

A WWD source estimated the deal would be worth $5 million to $10 million for the fashion and fragrance businesses. The level of debt is believed to be in the range of $25 million. Salvatore Ferragamo bought Ungaro in 1996 when the brand, especially the Emanuel/Emanuel Ungaro bridge collection, was riding high. In 1997, designer Giambattista Valli was hired to work aside the couturier. He was named creative director in 1998 and took the reins from Ungaro in 2001.

Di Spirt said on Thursday that the house would stage its next rtw show in March, but not necessarily with Darré. "Emanuel Ungaro has a rich history and great brand awareness," Abdullah said in a statement. "I am convinced that there's plenty of space to grow the brand in terms of pr estige and markets." Leonardo Ferragamo, an adviser to Ferragamo Finanziaria, which handles the group's diversified operations, said, "We feel that Abdullah has the competence, the credibility and the determination" to invest in "and the lead the company to success."