Trussardi brand placed in safeguard procedure
The Italian brand Trussardi has been placed in safeguard proceedings, following persistent financial difficulties. The company's debts to banks amount to more than 51 million euros. The Court of Milan will now appoint an expert to find a recovery solution.
By Eva Morletto08 mars 2023
Trussardi has been experiencing significant financial difficulties for some time now and has just been placed under safeguard procedure. Two years ago, the financial fund QuattroR, which is in charge of the management of the brand and owns the majority of the brand since 2019, had tried to buy back the credits by several banks, but the operation had failed. Last year, despite a 30 million euros recovery plan, the brand's financial situation could not be rectified. It is now up to the Court of Milan to appoint an expert, who will be responsible for finding a solution to the company's debts to the banks, which amount to over 51 million euros.
The two designers at the head of Trussardi who were tasked with relaunching the brand are Serhat Işık and Benjamin Huseby, appointed in May 2021. Their work failed to restore the desirability of Trussardi. The safeguard procedure was opened after the complete dissolution of the company's board of directors. Francesco Conte, who was the chairman of the board, as well as another managing director, Sebastian Suhl, have submitted their resignations.
Since early February, Angelo Rodolfi has been appointed as chief restructuring officer following a decision made by the TRS Evolution Spa assembly, 100% controlled by Trussardi Spa. This decision provides for the possibility of a single administrator at the head of Trussardi. Angelo Rodolfi, specializing in the restructuring of troubled companies, will be tasked of closely observing the management of the company and its relationship with debtors.
The Italian house saw its situation deteriorate earlier this year due to problems with its production and delivery processes. Unpaid debts from one of its main logistics partners in distribution further further aggravated an already grim situation. This unforeseen event represented a major obstacle during a period already affected by a worrying inflation rate, the energy crisis, geopolitical disruptions caused by the conflict in Ukraine, and the financial consequences of the Covid-19 pandemic.
Trussardi has been striving for several years to reduce its production costs, which are too high compared to its declining turnover. Its cost-cutting strategy was previously managed by Alix Partners. A large part of the employees have already been placed on technical unemployment until April.
The 2021 financial report showed a loss of 24 million euros compared to the 43 million euros billed the previous year. Over the past two years, Trussardi had relied on repositioning the brand by adopting a powerful digital strategy and opening new retail spaces, such as the new prestigious headquarters on Place de la Scala in Milan. However, the results of these operations have clearly not been successful.
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