Italian fashion-to-media firm HdP SpA on Friday announced it has approved a restructuring plan that will allow it to simplify its structure and revealed it is still holding talks over the sale of its fashion units.

The restructured group will be called HdP/RCS and will focus on it media operations. Officials say they expect the reorganisation to save the firm $46 million by 2005.

The group has been trying to sell its fashion holdings, which include GFT NET and Fila Holding, for months with Fila attracting the attentions of, among others, US apparel giant VF Corp and US fund Golden Gate.

It added should the Fila talks break down then "the group would be removed from the market and relaunched".