The Italian fashion house Valentino is to be spun-off into a separate new entity called Valentino Fashion Group SpA.

Parent company Marzotto SpA announced the change last week. It plans on spinning off its fashion brands, which include Marlboro Classics, a stake in Hugo Boss AG and Valentino into a new company. Shareholders in Marzotto will receive shares in the new firm equal to those owned in Marzotto SpA.

The spin-off will separate the fashion business from the textile brands, allowing the company on building the latter's presence, while the fashion brands are developed separately. Marzotto CEO Antonio Favrin said: "The spin-off enables the company to enhance the value of both sectors, creating the best conditions for growth and development."