Dubai’s reputed Damac Properties is the preferred party for the Italian fashion house Roberto Cavalli’s business sale, according to media reports. Cavalli’s decision to sell its troubled business emerges from the need to stave off a bankruptcy filing.

Roberto Cavalli closed its US stores in April this year.

Besides Damac, the fashion house received other binding offers from Diesel’s parent company OTB and American brand management company Bluestar Alliance.

The Italian private equity company Classidra holds 90 percent of stake in Cavalli since 2015. The fashion house’s recent struggles fuelled discussions between “shareholders and parties ready to inject cash in Cavalli to provide it with the resources necessary to overcome its current state of financial difficulties,” a spokesperson said according to The New York Times.

Last week, Cavalli confirmed that it received five offers for the sale of its enterprise. Also, it held a board discussion to evaluate which bid is most suitable for the acquisition. However, the final decision will be taken by the bankruptcy court which granted Cavalli creditor protection in April.

The brand is allowed to continue running its operations until it secures new investors or ownership.  Florence, where Cavalli is headquartered, has started witnessing protests by employees following the operations shutdown.

Previously, Damac signed a hotel partnership with Cavalli. According to the deal, the latter will do the interiors for at least five luxury Damac hotels under the brand name: AYKON Hotels with interior design by Roberto Cavalli.

Damac chairman Hussain Sajwani said, “Through the joyful spirit of the authentic Roberto Cavalli brand, we plan to meet market demands for familiar touch points, while offering guests distinctive experiences.”

Prior to the hotel partnership, Damac had partnered with Cavalli to launch villas in 2017.