Roberto Cavalli has closed its US shops just after announcing that it was trying to seek an investor deal to prevent bankruptcy.
The Florence-based brand, known for its flamboyant prints, announced on Friday 29 March that it intended to file a plan with the courts to allow the business to continue operating while it looks for new investment. Italian private equity company Clessidra holds a 90 per cent stake in the brand and has done so since 2015, but the New York Times reports that it trying to part ways with the brand as sales fall. Philipp Plein and Renzo Russo’s company OTB were said to be interested parties, but no deal has emerged yet. Cavalli himself holds the final 10 per cent.
A spokesperson for the label said discussions were continuing “between shareholders and parties potentially ready to inject cash in Cavalli to provide it with the resources necessary to overcome its current state of financial difficulties”.
Just hours after the initial news, US store employees were sent home with no notice and it was announced that the name of the brand’s North American subsidiary, would liquidate under Chapter 7 of the United States bankruptcy code by April 4 as part of restructuring plans. Multiple corporate executives at the brand, including US CEO Salvatore Tramuto, have resigned.
Cavalli’s latest creative director, Paul Surridge, left last week after two years at the fashion house.
“I have given much consideration to this decision and reached the conclusion that the mission I have signed on has changed and enters a new direction with a new perspective,” the statement read. “I now wish to focus on other projects that I put aside in order to achieve our common goals with Roberto Cavalli Group.”
From: Harper’s BAZAAR UK