Maison Margiela and Diesel owner Only The Brave, best known as OTB, is looking to acquire some new brands as the company’s cash flow is growing. Business of Fashion has reported that the company is looking to invest 200 million euros over the next three years, most likely acquiring other brands. In addition to Maison Margiela, OTB’s portfolio includes Marni, Viktor & Rolf, and Paula Cademartori. OTB posted a drop in revenues and margins, but saw its financial position strengthen to 111 million euros, an increase of 32 percent.
The company has recently started negotiations with Roberto Cavalli, which filed for bankruptcy and shutdown its North American operation, over the potential to buy the company. However, OTB has another bankruptcy problem of its own, as its most famous label, Diesel, filed for Chapter 11 bankruptcy last year. Luckily, it was the only brand in the company’s portfolio that didn’t post a growing turnover.
If OTB acquires Cavalli they will need to hit the reset button on the company and fast. Prior to shuttering their North American operations, they lost their creative director, Paul Surridge. They will also be left with the question of whether or not they will want to try and relaunch in North America, or just keep it to a wholesale business there with stores like Neiman Marcus carrying their brands. Cavalli might leave OTB with their work cut out for them, but the name has a lot of brand recognition, so the potential to turn it around is there.
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