Rykiel family considers selling fashion house

The family behind French fashion house Sonia Rykiel is in talks to sell a majority stake in the family business to Fung Brands, the investment arm of Chinese billionaire brothers Victor and William Fung.

Under the proposed deal, Fung Brands would control 80% of the Paris-based firm,while the Rykiel family would retain the remaining stake, both companies said in a statement on 26 January.

Sonia Rykiel founded the eponymous brand, which is famous for its pullovers and poor boy sweaters, in 1968. Her daughter Nathalie works as artistic director at the family business, which in 2010 reported revenues of €90 million.

The Fung family owns Hong Kong trading group Li & Fung. It had 2010 revenues of $15.9 billion (€12.1 billion).