Mariella Burani Fashion Group (MBFG) has been declared insolvent by an Italian court, leaving 30 days for a buyer to be found.
The court has nominated accountant Francesco Ruscigno to decide whether MBFG meets the requirements for Italian special administration, a process to organise a rescue plan for struggling companies without closing them down.
Alessandra Giovetti, a lawyer for MBFG, told Reuters that under special administration, either the company’s assets could be sold or an agreement with creditors could be found. “There is still a chance to reach an accord with creditors,” she said.
MBFG, which owns brands including Mariella Burani and Mandarina Duck and also European retail outlets including Revedi and Do Gil, has been struggling with about €500m (£447m) in debt for several months, following acquisitions and falling sales.
MBFG announced its intention to file for bankruptcy protection last month. It then said in a note to the Italian stock exchange at the end of February that it intended to cease trading after failing to restructure its debts.
MBFG shares have been suspended since the end of August.