Around 172 workers at Italian sportswear company Diadora SpA, which is being taken over by the founder and chairman of shoe retailer Geox SpA, are set to lose their jobs according to local media reports.

The workers at the Caerano san Marco facility in Treviso are to be offered redundancy pay and benefits instead.

The sale of the firm, which is being conducted through Mario Moretti Polegato's personal investment vehicle Lir, was announced last month.

Diadora, which is said to be saddled with debts of around EUR80m (US$111m), is being renamed Diadora Sport and will retain 79 employees as well as 64 working for Sport Uno, which manages the group's sales.