Burberry has announced that the fashion house is making arrangments to take over one of its leather goods suppliers based in Italy.
This acquisition comes as an attempt to increase in sales within its handbag business.
The global luxury brand is set to acquire a luxury leather-goods business from longstanding Italian partner CF&P.
When it comes to handbags and leather accessories, Burberry has not performed to its full potential. With that, the brand has decided to bring a team of around 100 leather goods specialists in-house.
Burberry released a statement stating that later this year, CF&P employees, including the team of expert craftsmen who have worked closely with Burberry for more than a decade, will transfer to the Company on completion of the transaction.
With luxury good firms making most of their revenues via high-margin leather accessories, Burberry has decided to cut out the middle-man, allowing the brand to not only gain more control over costs but also shorten turnaround times.
The Scandicci based company, CF&P, focuses on developing prototypes and works with other brands. With that, a small portion of the CF&P business will remain independent following the deal with Burberry.
In a press release, Marco Gobbetti, Chief Executive Officer, says:
“This acquisition is a major milestone for us and a statement of our ambition in this strategically important category. It will create a centre of excellence for Burberry’s leather goods, covering all activities from prototyping, product innovation, engineering and the coordination of production. This will give us greater control over quality, cost, delivery and sustainability of our leather goods.”
This announcement comes shortly after Riccardo Tisci’s newly announced “B Classic” Collection, honoring Burberry’s legacy.
Since March of this year, Tisci has taken over as Burberry’s new chief creative officer.
Prior to Burberry, Tisci acted as the creative director at Givenchy for 12 years.
Fashion Ambitions reached out to Burberry to comment beyond the press release but a spokesperson has noted that the company is not commenting beyond the release.