April 10, 2017 / 4:04 PM / in 4 months

Italy's Stefanel set to be relaunched and sold in next five years-source

MILAN, April 10 (Reuters) - The new top investors in Italian clothing company Stefanel aim to relaunch the struggling group, with fresh capital and a new positioning, and sell it in the next five years, a source at one of the funds that rescued the group said.

Loss-making Stefanel reached an agreement at the end of March with private equity funds Oxy Capital and Attestor Capital, handing them a 75 per cent majority stake in the group, and was granted a first emergency funding of 10 million euros.

The fashion group accumulated over 170 million euros ($180 million) in losses over the last decade while attempting to reach out to mid-range clients while surviving competition from high-street brands like H&M and Zara.

A final closing of the deal with Oxy and Attestor, with a green light by both Italy's market watchdog and a Treviso-based court that handled the bankruptcy case, is expected by the summer, the Oxy source said.

An initially envisaged market delisting will not be carried out because considered too costly but a new chief executive will be appointed in the next 3 to 6 months, the source said.

Reporting by Claudia Cristoferi, writing by Giulia Segreti

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