An investment group has set up a new company to acquire the Carlos Falchi brand, and plans to extend it beyond luxury handbags into products including footwear and apparel.

The newly formed company, called Falchi Holdings LLC, is backed by investors led by Windsong Brands LLC and Marvin Traub Associates.

Carlos Falchi will serve as the chief designer and creative director, while William Sweedler, chairman and CEO of Windsong Brands, and Stuart Jamieson, managing director, will serve as co-chairman of Falchi.

"Windsong Brands completed comprehensive market research on the Carlos Falchi brand prior to the acquisition and it revealed significant growth opportunities within its current handbag business as well as new categories," Sweedler said.

He added: "We have had strong licensing interest in many brand extensions including footwear, apparel, outerwear, jewellery, small leather goods and home products."

Private equity firm Windsong Brands also has stakes in companies including Ellen Tracy, Caribbean Joe, and Joe's Jeans.