Corneliani is navigating in troubled waters.
Due to the increased difficulties faced by the company over the last year, worsened by the coronavirus pandemic, the board of the luxury men’s wear company on Tuesday revealed it had decided to submit an application for admission to the composition with creditors procedure.
According to a statement released by Corneliani, “the management, with the support of its advisers, is working to evaluate every possible option to solve the crisis, in a particular historical moment of renewed consumer confidence for quality Italian products, inextricably linked to their territory, where workers, appreciated and recognized throughout the world, have been trained and developed.”
The first signs of trouble for Corneliani arrived in May 2019, when the company signed an agreement with the Italian unions to put its 525 Mantua-based employees in “Cassa Integrazione,” in this case, a 19-day temporary work suspension via special public funds.
Then, in November, the company announced the decision to cut 130 jobs in its Mantua headquarters. The move was part of a three-year strategic plan, developed by the men’s wear company to face its financial difficulties, which are also linked to an overall crisis of the luxury formal men’s fashion segment.
In December, the company tapped Giorgio Brandazza as its new chief executive officer. He succeeded Luigi Ferrando, who stayed in the role for only a year.