MILAN — Fashion house Cerruti has almost broken free from its financially troubled parent, Fin.part.
Italian men’s wear manufacturer Manifattura Paoloni has signed a contract to buy 82 percent of Cerruti 1881 SAS from cash-strapped Fin.part for 112 million euros, or $136.4 million. In addition to that, it will take on about 11 million euros of debt owed by Cerruti Holding SpA, which is being liquidated.
If completed, the deal will mark the end of what has been a bumpy ride for the label under Fin.part ownership. Fin.part is currently facing the courts as it approaches bankruptcy.
Manifattura Paoloni said in a release it has put down a 5 million euro, or $6.1 million, deposit to buy Cerruti, but the rest of the acquisition hinges on whether a Milan court will allow Fin.part to continue operating and execute a restructuring plan that involves a partial reimbursement to Fin.part and Cerruti bondholders. A court date for that decision has not been set. Fin.part said last July it was defaulting on nearly $260 million worth of bonds.
If the acquisition goes through, Manifattura Paoloni will pay another 5 million euros at the deal’s closing. Then it will pay off the rest in 12 annual installments of 8.5 million euros. But Manifattura Paoloni outlined a caveat: The size of those installments will decrease, starting with the fourth installment, if other Cerruti debts emerge over time.
Fin.part bought control of Cerruti (51 percent) in 2000 for $70 million. Cerruti was one of several Fin.part acquisitions, including Frette, Maska and Moncler, that caused Fin.part to rack up hundreds of million of dollars in debt. Fin.part has since spiraled into a financial crisis that has been marked by the resignation of founder Gianluigi Facchini and the ire of Fin.part investors.
In 2001 Fin.part bought the remaining 49 percent of Cerruti from designer Nino Cerruti and his family for $67 million. Under Fin.part control, Facchini and Nino Cerruti reportedly clashed and wrangled for control of the firm. In 2001, the company tapped Roberto Menichetti to design Cerruti, but he left six months later. Istvan Francer and David Cardona also did stints at the label.
Manifattura Paoloni is hardly a household name in the U.S., as most of the company’s business is in Italy and other European countries. WWD’s sister publication, DNR, ranked the company as the eighth-biggest men’s wear manufacturer in Italy. It is based in the central Italian region called Le Marche, and it posted 2004 sales of nearly 50 million euros, or $60.9 million.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews