Aiming to obtain an arrangement with its creditors, Scarpe&Scarpe has filed for bankruptcy protection with the tribunal of Turin, where it has its headquarters. The Italian footwear and apparel retailer has 153 stores and 1,800 employees
In a statement, Scarpe&Scarpe indicated that due to the nationwide lockdown imposed in Italy to combat the Covid-19 pandemic its management had to protect the company “with the only aim” of drafting a relaunch plan. It added that it has already hired consultants to elaborate a plan that would enable saving the company in the interest of its creditors and staff.
The company’s chief financial officer, Alessandra Miriello, claimed that the retailing segments most affected by the crisis were clothing, footwear and accessories. She added that the management was confident of overcoming the crisis with the collaboration of the trade unions, banks and suppliers.
According to the trade unions, the retailer was already in financial difficulties before the pandemic due to an estimated revenue shortfall of €50 million. The Fisascat Cisl union said the company had obtained access to a government-sponsored layoff fund for its staff, but had only paid 60 percent of wages for February and had not yet paid for the days worked in March.