The Bahrain-based investment fund has agreed to create a NewCo that will invest 7 million euros in the Mantua, Italy-based men’s wear brand. The decision was revealed on Tuesday after a meeting among Investcorp, Corneliani representatives, unions and members of Italy’s Ministry for Economic Development.
Investcorp will have to form the new company and make its investment by April 15. On that day, Corneliani will have to present to the Mantua court a new request for a composition with creditors, “which will guarantee business continuity and Investcorp indirect control through the NewCo,” as per a statement released by the Filctem Cgil, Femca Cisl, Uiltec Uil unions.
If Investcorp complies with the agreement, Corneliani will also receive a 10-million-euro investment from the Italian government through the Ministry for Economic Development as part of the “Re-Launch” Decree developed last summer by the Italian government to support the restart of the country after the global pandemic.
Investcorp, which acquired a majority stake in the company in mid-2016 in a deal estimated at around $100 million, will also have to present a new industrial plan to restructure the brand with a focus on developing solutions to safeguard Corneliani’s work force, as requested by both the unions and the Ministry for Economic Development.
In the past few months, there was speculation about potential investors interested in acquiring the brand — among them Italian fashion company BasicNet, which controls a range of labels including Kappa, K-Way and Superga — but no formal offers were actually submitted.