MILAN — Italy named three administrators for IT Holding SpA’s production and licensing unit Ittierre SpA on Thursday and tasked them with safeguarding the future of the company.
Italy’s Minister of Economic Development Claudio Scajola appointed lawyer Stanislao Chimenti, accountant Roberto Spada, and Bain & Co. partner Andrea Ciccoli.
“[Their] task…will be to resolve the current moment of crisis and to restructure the company in a way that allows it to grow again in a sector, which is fundamental for Made in Italy and for our country’s presence in world markets,” Scajola said.
Ittierre, which operates under license the Just Cavalli, VJC Versace, Versace Sport, C’N’C Costume National and Galliano labels, filed for bankruptcy protection on Monday, after running out of cash. It employs 772 staff and accounted for 65 percent of IT Holding’s turnover in 2008 and 77 percent of earnings before interest, taxes, depreciation and amortization, according to investment bank Mediobanca. The business is also the most profitable part of IT Holding.
The fashion group, which also owns the Ferré, Malo and Extè brands, has warned it could follow its subsidiary into administration as Monday’s decision triggered a clause allowing bondholders to call for immediate repayment of a 185 million euro, or $239.1 million, bond, due 2012.
As reported, according to financial sources IT Holding has sent out a dossier to potential investors hoping to solicit bids for part or all of the group. A European fund is already eyeing knitwear label Malo, sources said, while Doha, Qatar-based fund Abu Issa Holding has reportedly expressed interest in Ferré, IT Holding’s marquee label.