Roberto Cavalli, the renowned Italian luxury fashion house, is currently facing a critical period as it navigates the process of seeking new investors. In an attempt to stabilize its operations, reassure stakeholders, and attract potential buyers, the company is preparing to file for a composition procedure in the Court of Milan on April 2. This strategic move is aimed at safeguarding the future of the brand amidst challenging economic conditions.
One of the key decisions made by Roberto Cavalli as part of this procedure is the suspension of its activities in the United States. This market has proven to be particularly challenging, with significant losses prompting the company to reevaluate its presence in the country. The closure of stores, concessions, and outlets in the US has resulted in the layoffs of 93 employees, marking a significant shift in the brand’s operations.
While the focus is currently on the US market, Roberto Cavalli is also assessing its position in other regions. The brand, under the ownership of Italian investment fund Clessidra since 2015, is actively seeking new investors to support its growth and development. Recent discussions with American investment fund Bluestar Alliance have signaled potential opportunities for the brand to explore.
Despite the financial struggles that have led to the composition procedure, Roberto Cavalli remains optimistic about its future. With a workforce of 270 employees in Italy, concerns have been raised by unions about the brand’s stability. However, management has indicated that there is interest from potential buyers, offering hope for the company’s continuity in the luxury fashion market.
In the face of a sales decrease in 2017, Roberto Cavalli managed to reduce its operating losses, showing resilience in the midst of challenges. As the brand’s primary markets span across Europe, the US, the Middle East, and Asia, the focus remains on securing new investors and ensuring a sustainable future for Roberto Cavalli in the competitive fashion industry.
To learn more about Roberto Cavalli’s unique fashion offerings and history, visit their official website here. For updates on the latest developments surrounding the brand’s financial restructuring, stay informed through reputable news sources such as Business of Fashion.
