By  on February 15, 2010

MILAN — Mariella Burani Fashion Group said Saturday it was asking for bankruptcy protection and was seeking to be put into administration.

The company’s board said Burani “has not received evidence of a binding commitment from partners or third parties” to cover losses of a minimum of almost 71 million euros, or $96.7 million at current exchange. The hearing that will rule on the future of the group has been scheduled for March 16.

MBFG has debts of more than $600 million with a pool of banks. The group’s owners, the Burani family, failed to provide fresh funds for a capital increase by Friday’s deadline, following months of negotiations with the banks to ink a restructuring deal. On Thursday, a Milan court declared the bankruptcy of MBFG’s parent company, Burani Designer Holding NV.

An eight-hour strike took place at MBFG’s headquarters in Cavriago, near Italy’s Reggio Emilia, on Friday.

MBFG produces and distributes collections for fashion brands such as Giambattista Valli, La Perla and Vivienne Westwood, among others.

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