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Burani Group to Liquidate

Board of embattled Italian fashion company has resigned.

MILAN — Mariella Burani Fashion Group will be liquidated and its board has resigned, according to a statement sent to the Italian Stock Exchange.

A shareholders’ meeting to appoint liquidators is scheduled for March 29.

The liquidation follows the bankruptcy of MBFG’s parent company, Burani Designer Holding, in February.

MBFG produces and distributes collections for fashion brands such as Giambattista Valli, La Perla and Vivienne Westwood, among others.

Last month, the group appointed Giuliano Tagliavini chairman of the board, to succeed Walter Burani, founder of the group, who resigned following the decision of a Milan court to declare the bankruptcy of Burani Designer Holding, which is based in Amsterdam and is now under investigation for fiscal fraud. MBFG, which has debts of more than $600 million, has said it was asking for bankruptcy protection and was seeking to be put into administration. In the statement, the group said steps to request protection from creditors are “suspended.”