Furla, the well-known Italian luxury leather brand, is currently undergoing a strategic reorganization in the United States after filing for Chapter 11 bankruptcy. The process includes a crucial hearing set for January 28 in the Court of New York, where Furla USA will present a comprehensive plan aimed at efficiently emerging from bankruptcy proceedings.
The unexpected impact of the Covid-19 pandemic led to the temporary closure of several Furla stores, significantly affecting the brand’s operations. However, Furla is making significant progress in its recovery journey, particularly in the U.S. where it manages 14 stores and outlets directly. The company announced that it has successfully stabilized its operations and achieved key internal objectives as part of its reorganization efforts.
As part of the reorganization plan, Furla USA will be closing four locations across the country, including Roosevelt Field Mall, Aventura Mall, Copley Place Mall, and Houston Outlet. This strategic move aims to streamline the brand’s physical presence in the U.S. by considering factors such as lease agreements, foot traffic, revenue generation, and overall profitability.
Despite the challenges faced, Furla reaffirms its dedication to the American market and is actively engaging in negotiations with landlords of its remaining stores. By the end of January 2021, a decision will be made regarding which locations will remain operational in the future.
With a global network of 500 standalone stores, Furla is optimistic about the resilience of its American arm. The brand anticipates a strong comeback in early February 2021 and is focused on driving growth within the luxury goods industry. With an annual revenue of 500 million euros, Furla is well-positioned for a successful rebound post-reorganization in the U.S.
To learn more about Furla and its reorganization efforts in the U.S., visit their official website here. For updates on the latest developments in the luxury goods sector, check out this informative article here.
