RESTRUCTURING PUTS STEFANEL IN RED
MILAN — Gruppo Stefanel, a family-owned Italian sportswear manufacturer and retailer, has reported its first-ever losses, due to a major restructuring program.
The group said in a statement that Stefanel SpA, the publicly traded parent company that manufactures knitwear and sportswear under the Stefanel label, had losses of $36 million (56.5 billion lire) in 1995 compared with profits of $766,000 (12 billion lire) in 1994.
The company reported consolidated losses of $44 million (69.4 billion lire) against profits of $8.43 million (13.2 billion) in 1994.
Stefanel indicated it had proposed a $34 million (53 billion lire) capital increase through the issue of 42 million Stefanel shares at 96 cents (1,500 lire) each.
Group chairman Giuseppe Stefanel said his company’s losses were due to a restructuring program aimed at slimming down, repositioning the image of the company and reorganizing its network of retail outlets.
“The Stefanel Group is undergoing a radical change and must continue on this path of strategic development,” he said. “This change…must be supported by courageous decisions and adequate resources. For this reason, we have made certain decisions which have shown up on the balance sheet: It is a real turning point in the history of the company.”
Stefanel added, “We have also decided on a capital increase which will insure that the company’s assets remain on firm ground.”
A company spokesman told WWD, “The group preferred to put all of this year’s losses and costs on paper instead of spreading them out over 10 years — something Italian companies like to do. Next year, Stefanel will start with a clean slate and a new structure.”
The spokesman added that other companies belonging to Gruppo Stefanel were doing “very well.” The group’s consolidated turnover rose 5.5 percent to $367 million (575.4 billion lire) in 1995 in a particularly difficult retail climate in Italy.
One of the companies belonging to Gruppo Stefanel is Interfashion, which will manufacture and distribute Calvin Klein’s CK women’s and men’s bridge apparel lines in Europe and the Mideast starting this spring. The partners will set up a network of CK stores throughout Europe, beginning in 1997.