The tribunal of Reggio Emilia, with the support of the Italian government, has authorized Mariella Burani Fashion Group (MBFG) to go into extraordinary administration, a special regime endorsed by the Italian government. The measure will enable the insolvent company to avoid liquidation.
The Italian industry ministry believed it was opportune to place the company into extraordinary administration because MBFG can still be relaunched despite excessive debt due to its former acquisition spree.
At group level, MBFG had net debt of €495.9 million at the end of March compared with €497.9 million at the end of February. The drop derives from an improvement of the debt levels at Antichi Pellettieri and MBFG's ?digital? division.
The company will continue to be managed by Francesco Ruscigno, who was previously appointed by the court to establish whether the company could be saved. The ruling does not involve MBFG's Antichi Pellettieri subsidiary, which owns the shoemaker Baldinini and other brands.
Meanwhile, Antichi Pellettieri has completed the sale of its prestigious showroom on Milan's Via Montenapoleone to LVMH for €3.6 million. AP suffered major declines in operating profit in the first quarter of this year as its revenues dipped by 16.1 percent to €92.5 million. Its pre-tax profit fell by 57.6 million to €3 million.