New owners for Bruno Magli

According to Timothy Babich, who founded Fortelus late last year, the majority of their investment will go directly into the Bruno Magli business rather than to the shoe company's former shareholders.

Babich, a former executive at Connecticut-based Silverpoint Capital, said Fortelus is a turnaround fund with $300 million in capital. Bruno Magli, famed for their handmade men's and women's shoes, are the fund's first purchase. He said that the fund is looking at a series of other potential investments in Europe.

Opera bought the Bruno Magli business from the Magli family in 2001 for a reported $140 million. In 2005, BM USA Inc, Bruno Magli's US subsidiary, emerged from bankruptcy, resolving one the company's most serious problems.

Babich said that Opera has already completed a large portion of Bruno Magli's turnaround. He also commended consultancy Alix Partners, which has helped manage the footwear company since 2003. Babich stressed that investments will get the brand back on track for international development.

Bruno Magli already have a well-developed retail network, comprising 32 fully owned stores, 11 of which are in Italy and 21 in Japan. The brand also has more than 25 other stores managed through franchise agreements. Overall, Bruno Magli's distribution reaches 60 countries.

Fortelus did not disclose current sales figures for Bruno Magli. In 2004, Aaron Schwartz, then president of Bruno Magli North America, said that the company had about $82 million in annual sales worldwide, with the US accounting for 50%.

Printer friendly version

Email this article to a friend