Italian fashion house Trussardi SpA is on the verge of a significant transformation, which is moving towards change in ownership and the liquidation of assets as part of an extensive debt restructuring initiative.
This brand, coupled with select group branches, appears ready for acquisition by Miroglio Group, a manufacturer and distributor of ready-to-wear products, according to sources who spoke with Bloomberg.
The transaction would happen towards settling existing debts, but not without sacrifices. Numerous Trussardi stores are to shut, marking a shift for the struggling fashion house.
Amid a challenging economic landscape, potential suitors’ lack of interest, a sign of a trend in the luxury sector, worsened by Burberry Group Plc’s recent profit reduction and weakened demand in key markets like the US and China, reflecting the challenges faced by industry giants Richemont, LVMH, and Kering SA.
Currently under the ownership of QuattroR, an Italian buyout fund since 2019, Trussardi specializes in clothing and accessories for both genders. The proposed transaction awaits approval from the Italian court overseeing Trussardi’s restructuring process which was triggered by the brand’s exposure to Russia.
The decline in sales following the Ukraine invasion and subsequent sanctions prompted the need for an upgrade. Representatives of Trussardi, QuattroR, and Miroglio have refused to comment on the matter.
