MILAN — Dsquared2 Group and Staff International are letting bygones be bygones.

Their legal dispute has been resolved, as on Monday the two companies revealed they had signed an agreement to continue their collaboration for the production and distribution of Dsquared2’s ready-to-wear collections.

At the end of March, siblings Dean and Dan Caten said they were taking complete control of the fashion brand they founded in 1995 and that they were terminating the licensing agreement with Staff International SpA ahead of its expiration date in 2027, starting with the pre-spring 2026 sales campaign. The designers cited “breaches of contract” from its licensee, which Staff International denied.

The Catens still plan to internalize their apparel business, but this decision to bury the hatchet paves the way for Staff International to assist the brand until the spring 2027 season, when the licensing agreements will expire.

“The move reflects a shared and forward-looking vision aimed at reinforcing the historical collaborations among the two groups and the success of the brand,” they said in a joint statement. “The agreement is grounded in a more transparent and synergistic approach, encouraging the active exchange of expertise, technologies, and distribution resources to drive the evolution and growth of the collections, ensuring stability and cooperation and supporting Dsquared2’s evolution in the process of internalization. This evolution will be managed collaboratively, through a structured handover plan, based on transparency, respect and mutual trust.”

The two companies also said they will continue the collaboration for the childrenswear collections developed by Brave Kid, under the OTB umbrella, until 2030.

Staff International is the manufacturing arm of OTB, which comprises the Diesel, Jil Sander, Maison Margiela, Marni and Viktor & Rolf brands, as well as the Brave Kid childrenswear producer. OTB also has a stake in Amiri.

Following Dsquared2’s decision to end the license, Staff International filed a lawsuit in the Court of Milan against Grascoe Holdings Limited, Dsquared2 Trademarks Limited and the Catens and confirmed “its intention to fully execute [the license] until its natural expiry. Therefore, the company firmly rejects any possibility of early termination of the contractual relationship, and believes that legal conditions for early termination do not exist.”

The first agreement with Dsquared2 for the production and distribution of the brand’s ready-to-wear was inked in 2000. The 10-year-old licensing agreement in 2010 was renewed through to 2027 and was inked a year ahead of the expiration date.