Financially struggling fashion retailer Roberto Cavalli has been granted 120 days to present a turnaround plan by a Milan, Italy court, according to Business of Fashion. The private equity firm Clessidra SGR has reportedly been trying to sell its 90% stake in the company for months following a string of losses in recent years. Investors including the Italian fashion entrepreneur Renzo Rosso are reportedly considering a bid for the label.
Art Fashion Corp., the U.S. subsidiary of Roberto Cavalli, filed for Chapter 7 protection on April 4 following the resignation of several high-ranking U.S.-based executives, according to The New York Times. The retailer recently closed its 12 U.S. locations, which included stores in upscale venues such as Rodeo Drive in Beverly Hills, Calif.
Signs of the problems plaguing Roberto Cavalli were exposed when creative director Paul Surridge, who joined the fashion retailer in 2017, confirmed last month that he was leaving the company. A WWD report cited sources saying Surridge had grown increasingly frustrated by a lack of investment in two areas: development and refurbishment of the store network; and marketing and communications.