Dubai: Italian fashion brand Cavalli’s billionaire owner is planning a tower in Dubai to showcase its return after the pandemic nearly bankrupted the company.
According to Bloomberg, Damac Properties chairman Hussain Sajwani is likely to build a similar structure in Miami in addition to the proposed $545 million development.
The property tycoon bought the fashion company, which was founded in the 1970s by designer Roberto Cavalli, through his DICO private investment company in 2019. Earlier that year, Roberto Cavalli SpA closed its US stores and engaged in negotiations with creditors to prevent bankruptcy.
“I am committed to rebuilding the Cavalli brand, to relaunching it on key markets” – Hussain Sajwani, chairman of Damac Properties
“We are ready to invest as much as needed,” Sajwani said. In addition to that, he said he will invest in new locations throughout the world without providing specific figures.
Sajwani said Russia and North America will be essential for the brand’s successful relaunch, adding that the company has “signed up for five stores in the last 18 months and also franchise partners in Europe, the Middle East, and India.” Another six openings are in the pipeline, including Miami.
Pandemic-induced lockdowns have hit Italian luxury brands hard, with some high-profile companies such as Tod’s SpA asking for backing from larger groups like LVMH Moet Hennessy Louis Vuitton. Salvatore Ferragamo SpA recently hired Burberry Group CEO Marco Gobbetti to help the struggling leather goods brand turn its fortunes around.
Cavalli’s business has suffered during the period as well, though Sajwani said annual sales of about 170 million euros ($199 million) by 2024 – a goal indicated earlier this year by General Manager Ennio Fontana – is “very much a possible target.” The company isn’t likely to hit that level this year, he said, “but 2022 will be a much better year.”
A 70-story tower is set to be built at Dubai Marina next year, expected to be completed within four years.
Sky pools and sky gardens will be available in the luxury and high-luxury sections of the building, and super-luxury tenants will have private pools and spas. Interiors will feature Cavalli branded finishes.