One of Italy's most renowned production and distribution companies, Ittierre SpA, was placed in administration earlier this year when it filed for the Italian equivalent of Chapter 11 bankruptcy protection in February after running out of cash. But the distribution company, known for operating under license of luxe labels like Just Cavalli, VJC Versace, Versace Sport, C'N'C' Costume National, has just been renewed by John Galliano to produce the designer's diffusion line of men's and women's wear for the next five years. The original deal was inked between Ittierre and Galliano in 2006; the
new extension will begin with the fall 2009 collections and is due to
run through the fall 2014-15 season.
The freshly confirmed agreement — which analysts say could bring yearly revenues of around $56.3 million at current exchange rates — is part of managing director Massimo Suppancig’s priorities to turn Ittierre around and shed the financial problems of its past. Up to this point, the company had been surviving off a $40.5 million line of credit secured by administrators Andrea Ciccoli, Stanislao Chimenti and Roberto Spada. The credit enabled the company to continue regular operations, and secured the Just Cavalli and
C’N’C Costume National licenses. The VJC Versace license expired with
the fall 2009 collection.
Now Ittierre has until August to present a restructuring plan for its South Italian-based company and its 1,000 employees. Although the distribution company may not be out of the woods yet with its financial troubles, the Galliano agreement does supply them with a platform to rebuild upon. The administrators claimed the agreement with John Galliano served as a testament to the company's “international stance and its operational capabilities.”
Article Source: WWD
Photo Source: vogue.com