MILAN — As if any further reminder were needed of the financial crisis’ growing toll on the industry, Milan Fashion Week kicked into full swing with news that IT Holding SpA had filed for the Italian equivalent of Chapter 11.
The owner of the Gianfranco Ferré, Malo and Extè labels followed its production and licensing unit Ittierre SpA into administration on Thursday after last week filing for bankruptcy protection under the Italian equivalent of Chapter 11. Italy’s Minister of Economic Development Claudio Scajola approved the request, widening the brief of the three administrators he appointed Feb. 12 to restructure Ittierre. The move by IT Holding is likely to set off a scramble by companies eager to snap up its brands — particularly Ferré, which shows today, and Malo, which is holding off-calendar presentations by appointment.A spokesman for IT Holding said Thursday it was too early to say what the administrators planned to do to ease the group’s net debts, which, as of Sept. 30, totaled 295.4 million euros, or $376.7 million. But according to sources, a dossier has been sent out to potential investors hoping to solicit bids for part or all of the group. A European fund is already eyeing knitwear label Malo, while Change Capital Partners has renewed its interest in Ferré, IT Holding’s marquee label, sources said. Meanwhile Doha, Qatar-based fund Abu Issa Holding told an Italian newspaper earlier this month it too could be interested in Ferré — meaning by next season, at least two of Italy’s high profile fashion labels could have new owners.IT Holding submitted its petition under the Marzano Law, which allows companies to be placed under emergency administration and reorganized to stay in business.“The extension…is designed to protect the group and continue its activities,” Scajola said of his decision. “With over 1,800 employees, [IT Holding] possesses a know-how, which needs to be preserved and developed in a way that allows the further development of an activity in a sector, which is fundamental for Made in Italy and for our country’s in world markets.”On Wednesday, Ittierre said it obtained a 30 million euro, or $38.3 million at current exchange, line of credit from five Italian banks, after filing for protection under the same law earlier this month. The company said the lifeline would allow it to “reactivate its industrial and commercial activities in the spirit of safeguarding its day-to-day operations.”Sources close to the Italian fashion group said the new bank facility and Thursday’s decision represented a new dawn for Ittierre with IT Holding chairman and majority shareholder Tonino Perna frozen out.“In this financial environment, Ittierre achieved new financing in record timing. With the old ownership completely out of the picture and new money, the company is back on its feet,” sources said.Perna holds 60.6 percent of IT Holding via PA Investments SA and a further 1 percent through GTP Holding SpA, a separate vehicle. PA has debts of around 140 million euros, or $179.4 million.Ittierre, which employs 772 people and accounts for around two-thirds of IT Holding’s revenues, operates under license the Just Cavalli, VJC Versace, Versace Sport, C’N’C Costume National and Galliano labels, although the business ground to a standstill earlier this month after running out of cash. It still owes licensors royalties.Roberto Cavalli, whose Just Cavalli label is Ittierre’s biggest license, generating annual revenues in 2007 of around 240 million euros, or $329 million, canceled the young line’s runway show this week, blaming the disruption at Ittierre.
“I grew up in New York but I hadn’t really experienced the city in any type of touristy way…This was probably the first museum I really explored and took the time to see,” said @haileybaldwin of the @whitneymuseum. On Tuesday night, Baldwin was joined by Jemima Kirke and more at the annual Whitney Museum Gala and Studio Party, which honored Lorna Simpson, Joanne Leonhardt Cassullo and Beth Rudin DeWoody. See more photos on WWD.com. #wwdeye (📷: @lexieblacklock)
Displayed starting this week at the @fashiontextilemuseum: An exhibition on designer @orlakiely titled “Orla Kiely: A Life in Pattern,” which spans two decades and contains more than 150 pieces. “I want people to come away loving pattern and print. It’s something that makes you feel so good,” said the designer during a preview of the exhibit. Also on show are mood boards, samples, sketches and more. Head to WWD.com to see more photos. #wwdfashion
Exclusive: @dsquared2 signs fragrance licensing agreement with Euroitalia, with the first effort of the new partnership being unveiled in September. The brand will launch two scents – one for men and one for women – in Italy. Read our interview with designer Dean and Dan Caten on WWD.com. #wwdbeauty #wwdnews (📷: @zefashioninsider)
@louisvuitton has officially renewed Nicolas Ghesquière’s contract as artistic director of women's collections. "I am very pleased to open the next chapter of the story I started with Louis Vuitton almost 5 years ago," said Ghesquière, who first signed on to design the French luxury brand's women's line in 2013. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @giovanni_giannoni_photo)
“I learned then and there that I had to figure out a way in life to maintain and preserve my sense of pride when I felt good about what I did or what I represented or created,” said @saintrecords on how being bullied for wearing capri pants inspired her to be the artist she is today. Knowles was at the 70th Parsons Benefit last night where she outbid the room for a Dapper Dan customized @gucci experience. #wwdeye (📷: @lexieblacklock)
“There’s this amazing braintrust of people who know the whole universe so well. So we talked to them and they gave us more input,” said actor Alden Ehrenreich on playing the young Han Solo in “Solo: A Star Wars Story.” The cast was at NYC’s SVA Theatre last night for an advanced screening of the film, which hits theaters this week. #wwdeye #starwars #hansolo (📷: @aurorarosedecrosta)
@asaprocky spent nearly two hours in a Plexiglas box Sunday night at @sothebys putting himself through a series of “tests” to demonstrate the process of completing his new album called “Testing.” Get all the details and see all the pictures on WWD.com. #wwdeye
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion (📷: Dan Doperalski)