Mariella Burani Fashion Group is understood to be at risk of bankruptcy after the Italian luxury fashion group’s financial adviser quit at the beginning of this year, having failed to renegotiate its debts.
Mariella Burani produces and distributes luxury clothing, leather goods and accessories under brands including Mariella Burani and René Lezard and also runs retail outlets in Europe under the Revedi, Do Gil and Bernie’s fascias. It also holds licences for Vivienne Westwood Anglomania, John Galliano jewellery and Aquascutum footwear.
According to reports, the group’s debt stood at €492.6m (£440.1m) at the end of November.
Mariella Burani Fashion Group’s former financial adviser, Mediobanca Banca di Credito Finanziario, was attempting to renegotiate the group’s debt with more than 40 banks in late 2009 but quit this year having failed to settle new terms. Creditors include Deutsche Bank, Bank of China, Cariprato and Barclays Bank.
The Burani family said in a statement at the end of December that it did not intend to file for bankruptcy protection. The group also said late last year that it was seeking funding of €83.5m (£74.6m) to cover losses in the first half of the year but no guarantees have yet been provided.
In its latest figures Mariella Burani reported a net first-half loss of €142.1m (£127m) for the six months to June 30, compared to a net income of €4m (£3.6m) in the same period last year.