NEW YORK — Shawn Zachary Design Inc., an investment group formed by former retail executive Zachary Belil, last month acquired a 49 percent stake in Hanover Industries for an undisclosed sum.

Hanover, founded in 1997 by Elana Carello, manufactures women's and children's novelty knitwear. The Elana Carello label is sold in better department stores and catalogues.

According to Belil, the company name has been changed to Elana Carello Knitwear. Carello will continue at the company in the role of chief creative officer. Belil, who said Hanover's headquarters will remain in Providence, R.I., is chairman and interim chief executive officer.

The 49 percent stake in Carello is the first acquisition for the newly formed investment group. "Zack and I worked together in the past when he was the president of Work in Progress, so I'm very excited to start working with him again," said Carello.

Belil, director of Shawn Zachary Design, said his group will provide the knitwear firm with operational and technological support.

Prior to forming Shawn Zachary Design, Belil was vice president of sales and merchandising at Pine Needles Apparel. Before that stint, he was divisional merchandise manager at Christopher & Banks for nearly five years. He was product development director at Mitsubishi International Corp. before becoming president and co-owner of the Daggar Group, which manufactured sweaters under the label Work in Progress. After selling Daggar, Belil worked briefly at Kellwood Corp. as divisional vice president of Vintage Blue Sweaters.