Ittierre, the production and licensing unit for diffusion luxury labels including Just Cavalli, Galliano and Versace Sport, has filed for bankruptcy protection after failing to find sufficient funding to enable it to continue trading.
Ittierre, a subsidiary of Italian-based company IT Holding, which owns the Gianfranco Ferre brand, filed for “amministrazione straordinaria” under the “Legge Marzano” - the equivalent of filing for Chapter 11 bankruptcy protection - to allow the group to be “restructured and continue its business operations”, according to a statement from IT Holding.
The bankruptcy order may be extended to the whole company, after IT Holding missed a loan payment in October and subsequently missed a deadline extension for the payment two months later.
The company said last week it was in arrears in paying royalties to the designers Ittierre makes and sells luxury goods for, including Roberto Cavalli and John Galliano.
IT Holding said in a statement: “The board ascertained the absence of the conditions necessary to continue its operations in a regular course of business; in particular with regards to the availability of the necessary financial resources and the continuity of its license agreements.”
It is unclear whether deliveries will be affected. Check back soon for more updates.