Italian fashion company IT Holding SpA Files Bankruptcy for Ittierre Unit
Posted on February 10, 2009
Italian fashion company IT Holding SpA filed bankruptcy proceedings for one of its units due to the recession. IT Holding owns the Gianfranco Ferre couture line. It filed bankruptcy for its Ittierre unit as part of an overall restructuring plan.
It Holding SpA's shares were suspended by the Italian stock exchange following the bankruptcy filing.
The Wall Street Journal reports that the Ittierre unit is no longer able to pay "pay royalty fees to brands it has under license."
IT Holding's debt troubles are emblematic of the luxury industry. Designer-label companies profited before the downturn as the world's wealthy boosted demand for expensive purses, shoes, sunglasses and clothes. But growth has slowed at European luxury competitors.
IT Holding SpA was dealt a blow when Gianfranco Ferre unexpectedly die in 2007. Then it lost its license for Dolce & Gabbana's spinoff line, D&G. Those two factors plus the severe drop in luxury spending really hurt the company.
A WWD story notes that years later Ittierre SpA hit the restart button and relaunched as Le Fabbriche Riunite.