Ballantyne goes into administration
Scottish cashmere company Ballantyne has gone into liquidation, a source close to the matter has confirmed to FashionMag.com.
Revenue at the company was reported at 14.4 million euros in 2012 with losses of 7.7 million. By September 30, that loss had risen to 12.8 million euros. At a meeting held in October 2013, shareholders decided against the restructuring and recapitalization of the company, despite it being in a critical state.
Since its acquisition by Italian investment firm Charme Investments (also backers of Ferrari) in 2004, Ballantyne has struggled to cement its place in the luxury knitwear market and to find a consistent management team and strategy. After closing its prestigious stores on Via Sant’Andrea in Milan, the company pulled the curtain on its children’s wear line and brought in new creative direction to revive the brand’s image, but all to no avail.
Controlling shareholder Charme Fashion Group (owned by Charme Investments (51%) and Russian business oligarch Vicktor Vekselberg) and Spring Petroleum Investments Luxco II (Abu Dhabi’s sovereign investment fund with a 49% stake in the company) have decided to call it a day for the company, founded in 1921.
Ballantyne has been transformed into company named Alpha SRL and an accountant in Montebelluna, Italy, where the company is headquartered, has been appointed as administrator. According to sources, it seems likely that owners are looking to sell the brand in order to repay creditors.
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