Italian fashion brands Mcs (former Marlboro Classics, owned by Mcs Cavaliere srl) and Marina Yachting and Henry Cotton’s (these two owned by Isc-Industries Sportswear Company srl) have been declared defaulted by the Venice Court, Fashion Network yesterday wrote.
Just a few weeks ago public commissioners had been appointed in order to manage a bankrupcty agreement aimed at the financial restructuring of the companies, that (through Emerisque Brands) are ultimately controlled by the Emerisque Fund, sponsored by the Indian entrepreneur Ajay Khaitan. Emerisque had bought Marina Yachting and Henry Cotton’s brands together with the Cerruti license in Novembre 2013 from Moncler (see here a previous post by BeBeez) and in Aprile 2013 the fund had bought MCS from Valentino fashion group.
Last September 6th in a meeting at the Italian Ministry of Economic Development in Rome, the chief restructuring officer of the two companies, Raffaele Fiorella, said she had received from the Court a decree admitting both Industries Sportswear Company srl and MCS Cavaliere srl to the bankrupcty procedure and that commissioners had been appointed by the Court, respectively, Gianluca Vidal and Nerio De Bortoli. Mrs. Fiorella also said that the admission file to the procedure included a request of authorization by Emerisque fund to inject new finance in the company which should be safe from creditors and that the two commissioners would have been asked to answer that question soon in order to guarantee continuity to the company’s business.
In a previous meeting in Rome at the Italian Ministry of Economic Development last March, Industries Sportswear Company’s HR head Emanuele Odazio had said that talks with with lending banks were on in order to transform short term loans into medium-long term loans and that Emerisque was ready to invest new money in the company to guarantee its business.
Actually Emerisque had initially said it would have invested 18 million euros, but the fund then decided to lower its committement to 6 millions and finally chose not to invest anymore, Fashion Network yesterday wrote, so that the Court was compelled to declare defaulted the two companies.
The last available financial statement for ISC is the one for 2014, when the company reached 103.1 million euros in revenues, 2.9 millions in ebitda and had a 1.3 million euros net financial debt ( see here an analysis by Leanus, after free registration and login). Mr. Odazio in his meeting woth the Ministery last March said the company reached 120 million euros in revenues. As for MCS Cavaliere, the company reached 66.2 million euros in revenues in 2014 and a negative ebitda of 2.8 millions ( see here an analysis by Leanus, dafter free registration and login).