Aug 6, 2014
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Bruno Magli asks court to allow arrangement to prevent bankruptcy

Aug 6, 2014

Bruno Magli is still facing a difficult situation. The Italian footwear brand has asked a court for permission to enter into an arrangement with creditors that would allow it to continue to operate while also continuing negotiations.

The application was filed with the Court of Bologna on July 15, 2014, according to documents stored at the chamber of commerce. A court commissioner has been appointed, while the company has 60 days to submit a plan to its creditors.

Bruno Magli shoes

In June, Guiseppe Pirola was made chair of a new board of directors, taking over from CEO Hendrik Klein. Evidently the Swiss company Da Vinci Invest, which purchased Bruno Magli last January, failed to revive the brand, and its plans to move a part of the production to Bologna was quickly abandoned.

As noted by FashionMag on June 16, Bruno Magli is in a critical financial situation. Following the closure of stores on Milan’s prestigious via Montenapoleone and in Rome’s Fiumicino Airport, which included the dismissal of 9 employees, there are now plans to close its store in Venice as well. Loro Piana has already set its sights on the prestigious location hitherto occupied by Bruno Magli in the San Marco district.

A meeting has been fixed with the unions for August 25. According to them, 41 out of 45 employees could be laid off. In 2011, the company founded in Bologna in 1936 had already been heavily restructured ultimately eliminating 90 positions, outsourcing production and transferring its business activities to Milan. Until recently, there were about 80 people still working for or collaborating with the label.

Based on what has been learned, steps have been initiated to save the brand and to find a buyer. Contacts have been made in particular with Stefano Maroni. The latter leads GMI USA Corp, a footwear distribution company that holds licenses for brands such as Ben Sherman, and already distributes Bruno Magli on the US market.

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