Italy's Burani fashion house seeks bankruptcy protection
today Feb 14, 2010
ROME, Feb 13, 2010 (AFP) - Debt-ridden Italian fashion house Mariella Burani said Saturday 13 February it would seek bankruptcy protection after failing to raise funds to cover losses.
Photo: AFP/File/Giuseppe Cacace
With a debt of nearly 500 million euros (680 million dollars), the company decided to begin bankruptcy proceedings with the intention of "continuing business activities," it said in a statement after an extraordinary board meeting.
Burani had "no evidence of a binding commitment from partners or third parties" to raise the funds necessary for a restructuring, the statement said.
MBFG, a purveyor of "accessible luxury," whose labels include Mandarina Duck and Coccinelle, recorded a loss of 185 million euros in the first nine months of 2009.
The decision came after a Milan court on Thursday 11 February declared bankrupt the Burani Designer Holding (BDH), which indirectly controls Mariella Burani Fashion Group (MBFG).
"After months of fruitless negotiations... the minimum conditions for a rescue" of the group overall are no longer present, the court said.
Milan prosecutors are investigating Walter Burani for currency speculation, false accounting and tax fraud.
Copyright © 2019 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.