UPDATE: April 8, 2019: Noting that its Italian parent company, Roberto Cavalli S.p.A., "is also experiencing significant financial distress," the apparel brand’s U.S. operation on Thursday filed for Chapter 7 in the United States Bankruptcy Court for the Southern District of New York, which entails liquidating the business. That unit, which does business as Art Fashion Corporation, is "no longer able to operate as a going concern," according to court documents.
Dive Brief:
- Luxury fashion house Roberto Cavalli closed all U.S. stores on Friday and is preparing to liquidate its North American operations, which does business as Art Fashion Corp., according to Business of Fashion and confirmed by the New York Times. The company is expected to file Chapter 7 bankruptcy this week, a Cavalli spokesperson confirmed to both publications.
- The store closures occurred around the same time that multiple news outlets reported Roberto Cavalli is seeking an agreement with creditors while it searches for an investor.
- A Roberto Cavalli spokesperson confirmed to Business of Fashion that 93 U.S. employees were let go on Friday. At the time of store closures, U.S. CEO Salvatore Tramuto resigned, per the report. Roberto Cavalli did not immediately respond to Retail Dive's request for comment.
Dive Insight:
Roberto Cavalli is among several filed and potential bankruptcies in 2019 and a cascade of store closures that even early in the year is close to surpassing 2018's total.
Changes were already imminent within the Italian fashion house, when on March 21 creative director Paul Surridge announced his resignation from his position through a statement on Instagram.
"I have given much consideration to this decision and reached the conclusion that the mission I have signed on[to] has changed and enters a new direction with a new perspective," he wrote. "I now wish to focus on other projects that I put aside in order to achieve our common goals with Roberto Cavalli Group."
The designer recently received positive reviews for his latest collection at Milan Fashion week this past February.
Italian private equity group Clessidra owns a 90% stake in the company, which it purchased for an estimated $430 million in 2015.
