BX Blackstone Inc

By Deborah Ball 

Florence-based fashion house Roberto Cavalli SpA announced the departure of its designer, as the company embarks on a reorganization under new management.

The design house, famous for its provocative styles and a favorite among celebrities, said Wednesday that creative director Peter Dundas will leave Roberto Cavalli after just two years with the house. Mr. Dundas's design team will carry on with the collections until a new creative director is appointed "in due course," the company said.

Last year, Italian private-equity firm Clessidra bought a 90% stake in the label, with the founder of the house, Roberto Cavalli, holding the remaining 10% stake. In July, the company said that Gian Giacomo Ferraris would become its new chief executive.

Before joining Roberto Cavalli, Mr. Ferraris headed a successful turnaround of Versace, where he lead an extensive reorganization, improved profitability and struck a 2014 deal to sell a 20% stake to private-equity firm Blackstone Group LP to fund growth.

At Roberto Cavalli, the new owners charged Mr. Ferraris with relaunching a label that has remained a minnow in the fashion world, despite its notoriety. It has been suffering of late from the downturn in Russian shoppers, who have traditionally flocked to the label.

In 2015, Roberto Cavalli had sales of EUR180 million ($199.8 million), down 14% compared with the previous year, in part due to the decline in its Russian sales and a fall in licensing fees. Costs stemming from its restructuring pushed the company into an operating loss of EUR1.6 million.

The news from Cavalli come amid a slate of changes at other European fashion houses. French luxury giant Kering SA appointed a new chief for Bottega Veneta brand, whose business has begun to wane this year, while Burberry Group PLC will have a new chief executive starting next year.

Write to Deborah Ball at deborah.ball@wsj.com

(END) Dow Jones Newswires

October 12, 2016 09:38 ET (13:38 GMT)

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