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Roberto Cavalli shuts down stores in the USA; Sends employees home without notice amidst bankruptcy rumours
The luxury brand shut all stores in the US in the midst of seeking for an investor deal to prevent the brand from going bankrupt.
According to reports, the Florence-based brand announced on Friday that they were submitting a request to the courts to allow business to continue operating while looking for a new investment deal. Sales are falling and the New York Times reported that Clessidra, an Italian private equity which company holds a 90% stake in the brand is trying to part ways. German fashion designer Phillip Plein was said to be interested in the company where Cavalli holds only 10%.
When questioned about it, a spokesperson of the label said that there were potential shareholders and parties who were "ready to inject cash in Cavalli to provide it with resources necessary to overcome its current state of financial difficulties."
Just a couple of hours after the news broke, it was reported that employees at the US Roberto Cavalli stores were sent home with no notice. Multiple people from the brand including Salvatore Tramuto - CEO, have resigned from their positions. Paul Surridge the Creative Director too, quit last week. In a statement, he said that he had made this decision after giving much consideration to things an that "the mission I have signed on has changed and enters a new direction with a new perspective. I now wish to focus on other projects that I put aside in order to achieve our common goals with Roberto Cavalli group."
What are your thoughts on the brand's abrupt decision? Do you think they will be able to overcome this? Comment below and let us know.
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