Corneliani, which in June submitted an application for admission to a composition with creditors procedure, is receiving an investment from the Italian State.
The state intervention falls under the new “Re-Launch” Decree, developed by the Italian government to support the restart of the country after the global pandemic and which includes the creation of a fund to support companies during the crisis.
“A new important path for the reopening of Corneliani’s manufacturing plant has started,” stated the Ministry for Economic Development’s under-secretaries Alessandra Todde and Alessia Morani. “The State will enter in the company’s equity enabling the court-appointed commissioner to elaborate a plan to guarantee continuity to Corneliani’s activities. The goal is an immediate reopening of the company and a return of employees to work.”
As explained by CGIL Mantua’s general secretary Michele Orezzi, the factory has been closed since June 12 and the employees protested outside the company for 40 days. “We are very happy with the result we are obtaining,” Orezzi said. “Now, we are waiting to hear from the company if it plans to make a significant investment to relaunch the brand.”
Corneliani, which employees 1,200 people worldwide, is controlled by Investcorp, a Bahrain-based investment group, which bought a majority stake in the company in 2016 in a deal valued at $100 million.
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, last November, the company revealed the decision to cut 130 jobs at 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 linked to the overall downturn in demand for men’s luxury formalwear.
In December, the company tapped Giorgio Brandazza as its new chief executive officer. He succeeded Luigi Ferrando, who had held the role for only a year.