Just as we started to feel that things were looking up, yet another fashion line is in trouble due to the economy.
Italian company Burani is doing all it can to stay afloat after failing to reach an agreement with lenders while nearly 500 million euros in debt.
The brand, which makes high-end womenswear, reported in August that its label, Mariella Burani Fashion Group, took a loss of 142.1 million euros versus an income of 4 million euros.
In order to ease up some of the debt, Burani has subsequently liquidated deals with the labels’ holding company, but there is speculation that this will not be enough. In spite of founder Walter Burani‘s statement that the company will not file for bankruptcy, industry insiders remain skeptical.
These days it seems everyone is in debt!
Hopefully they can get back on their feet and come to an agreement with their debtors.
Yikes.
[Image via AP Images.]
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