Rumors have surrounded Roberto Cavalli's empire for over a year, some speculating that he'll be forced to sell a minority stake in his company in order to save it.

WWD reports that he's closer to a sale, indicating that a spokesman for Clessidra SGR SpA said that "Cavalli has signed a letter of intent with the Milan-based private equity fund for the sale of a minority stake in the house."

Clessidra is lookign at a 30 percent stake in Cavalli's company, which might be necessary, considering his Italian licensee Ittiere (which produces Just Cavalli) has filed for financial protection from creditors.



WWD's piece has enough financial info to make your head spin, but the most shocking numbers are Cavalli's 90.6 percent drop in profits in 2008 and an 80.5 percent drop in earnings.

What does this mean for Roberto? Will he continue as the creative visionary? A new CEO is certainly a possibility, which could change the direction of the Italian fashion house.