The German subsidiary of loss-making Italian fashion label Stefanel has sold its Hallhuber brand to private equity-owned Blitz 09-450 for EUR25m (US$35m).

The transfer of Hallhuber's total share capital to Blitz 09-450, which is controlled by Change Capital Fund II, should be complete by 10 September, subject to approval from the German tax authorities.

Clothing producer and distributor Hallhuber has 93 points of sale in Germany, including 51 stores, 33 corners and nine outlets.

In the year to 31 December 2008, the brand posted revenues of E58.1m, EBITDA of EUR4.9m and net profit of E1.7m.

Its net equity was EUR8.4m. The purchase price of EUR25m could rise by a maximum of another EUR4m, depending on any future capital gain Blitz 09-450 obtains from Hallhuber, said Stefanel.

Last week Stefanel announced first half losses of EUR28.4m, more than double its losses for the same period last year. Revenues slumped 15.8% to EUR118.1m.