MILAN — Gianfranco Ferré SpA said a court in Isernia, Italy, has rejected the label’s administrators’ appeal to sequester the brand.
The commissioners had first requested the brand be confiscated from owner Paris Group in October 2011. The motion was denied in May last year.
In a statement, Dubai-based Paris Group expressed “great satisfaction” for the decision of the court and reiterated “its will to maintain Ferré’s production activities in Italy and to invest in the brand.”
Paris Group also confirmed the label’s show on Feb. 25 during Milan Fashion Week. The collection is designed by Federico Piaggi and Stefano Citron. The location is still to be determined as Paris Group left Ferré’s historical headquarters in Milan’s Via Pontaccio last September, which was also an issue of contention between the owners and the commissioners.
Paris Group is owned by Abdulkader Sankari and his son Ahmed. A legal battle has been raging over the Ferré brand as the state-appointed commissioners, who oversaw the company’s sale in February 2011 after two years of state-controlled bankruptcy protection, were seeking to confiscate the brand to avoid further deterioration of its assets as they believe the label has not been developed by its new owners.
In September, Ferré’s new chief executive officer, Mohamad Iyad Jalab, told WWD that Paris Group was suing the commissioners, asking for damages and payment of “nonexisting credits.” Paris Group is seeking 4 million euros, or $5.4 million at current exchange.
According to Jalab, Paris Group has invested 80 million euros, or $108.2 million, so far in the fashion house, as certified by Deloitte & Touche, Paris, and paid Ferré’s debts.