AN ITALIAN firm backed by the Benetton clothing family has taken control of one of East Lancashire's most famous names.

A £7m majority stake in the Karrimor outdoor equipment firm has been bought by an investment firm part owned by the famous Italian empire.

The Clayton-le-Moors-based firm, which employs 300, was founded more than 50 years ago by the Parsons family.

The deal will mean Karrimor, which manufactures rucksacks, outdoor clothing and footwear, will receive the massive capital injection.

The announcement ends weeks of speculation and rumour over its future. The firm recently said that a cash injection would help it expand and take advantage of new market opportunities.

Karrimor has bought two companies in recent years which had doubled turnover but caused some financial difficulties which led to firm seeking a cash injection. 21 Invest is the investment arm of the Benetton and Bonomi families of Italy.

Karrimor chairman Mike Parsons, son of the founder, will become president following the deal and his family will keep a small stake in the business.

"I am extremely pleased with the deal," said Mr Parsons today.

"Benetton is a very strong card to play throughout Europe and they certainly haven't bought the business to stand still."

He added: "This investment opens an exciting new chapter in the Karrimor story. The financial strength that 21 Invest will bring give us the building blocks to press ahead strongly."

The firm can trace its history back to the 1930s when Charlie Parsons had a bike shop in Waterfoot. The business later moved to Rawtenstall where Mike's mother Mary began making cycle bags.

Karrimor moved into mountaineering equipment 35 years ago when two local climbers arrived at the shop and asked if they sold rucksacks.

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