So on April 29 I wrote a post on my personal blog on how Sheikh Majid was a massive inspiration for my generation of Mid East kids who got involved in the culture industries. Villa Moda, the fashion empire he founded had unveiled plans for the most exciting retail concepts the region had seen (working with super star designers like Jamie Hayon and Marcel Wanders).

But I also questioned the company’s shaky looking finances. As a public company there was more info available on Villa Moda than there usually is in the region. I said:

“2008′s q1 numbers are only in the black thanks to ‘other income’ of US$2.5 million. lets see if the group can match the visionary fashion plans with prudent financial planning.”

Somehow I missed this in the news but an industry friend recently informed me that the DIFC Lifestyle Group (a newly formed entity of DIFC Investments that offers high-end fashion, fine dining and sophisticated modern art and culture) purchased a 70% stake in Villa Moda in September.
Sheik Majid has said he cut the deal “due to the great potentials and long experience of DIFC Lifestyle in the field of luxury fashion and clothing items“.
This of course makes no sense as DIFC Lifestyle is a new company with virtually no experience in the industry (in any industry for that matter). What it is, is a company with deep (though probably highly-leveraged pockets and plenty of luxury ambition. Al Sabbah will remain board chairman but a new CEO will be hired. All in all a sound sounding deal although the timing may prove to be a concern. The GCC is one of the few areas in the world where luxury sales are still growing, but at markedly slower rates than recent years.

It will be interesting to see how it pans out. Either way, I called this one early.

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