The Italian brand known for its flamboyant designs is ceasing operations in North America.
Such a step is taken a fraction of in order to avoid bankruptcy.
Roberto Cavalli is going through hard times today. The fashion house, headquartered in Florence, has lost popularity in recent years and lost many of its fans. As a result, a significant decline in sales followed. Suspicions that the brand is not doing very well first appeared back in 2017, when creative director Paul Surridge announced his departure.
The brand is struggling financially and desperately needs new investors. The US store closures are an attempt to delay the bankruptcy that seems inevitable today. In the meantime, the brand will present to the Italian courts a new action plan that will allow the company to continue its activities until it attracts investments. In total, there were 8 stores and 4 outlets in the USA, all located in prestigious areas, such as Rodeo Drive in Beverly Hills, California.
To date, 90% shares of Roberto Cavalli are owned by Clessidra, a private Italian equity company. For the past few months, there have been rumors that this company is now in every possible way trying to get rid of a dubious asset. These rumors were fueled by negotiations with the American investment firm Bluestar Alliance and the German fashion designer Philipp Plein (Philipp Plein).
However, the deal was never announced, although a Cavalli spokesperson confirmed that discussions were ongoing "between shareholders and parties potentially willing to invest in Cavalli to provide the brand with the resources it needs to overcome its current financial difficulties."
Meanwhile, in Florence, workers' unions are planning a strike with protests near the headquarters of Roberto Cavalli. Trade union representatives have publicly expressed their concern about the future of the company's workers.
