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.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)