Furla prepares to reorganize in the US
Italian leather goods brand Furla is hoping to rectify its situation in the U.S. as quickly as possible. Only a month after it filed for Chapter 11 bankruptcy, the company's American subsidiary has presented its reorganization plan to the Court of New York, which will hold a hearing about the project on January 28.
The plan should allow Furla USA to emerge from the Chapter 11 process fairly rapidly. Having been strongly affected by the Covid-19 pandemic due to the temporary closure of its stores, the brand, which is known for its handbags, is regaining territory in the U.S., where it directly operates 14 stores and outlets. As the company explains in a release, it has "stabilized its operations" in the country and "achieved almost all of its internal objectives."
The plan presented by Furla USA establishes a timeline and gives all the details about the payments due to its creditors, as well as about their recovery. In the document, the company also reviews its U.S. brick-and-mortar network, examining the tenancies, placing, revenues and profitability of each of its points of sale in the country. "After careful consideration, the label has decided to close four locations: Roosevelt Field Mall, Aventura Mall, Copley Place Mall et Houston Outlet," said the company.
Furla, which is positioned in the accessible luxury segment, was never considering leaving the American market. Founded in Bologna in 1927, the house is currently negotiating with the owners of its other U.S. stores and will announce which of its remaining locations in the country will stay open by the end of January 2021.
With its products being distributed through 500 monobrand stores around the world, the Italian brand is convinced that its American subsidiary "will emerge from the pandemic stronger than ever and return to the path to success in early February 2021." The company's annual revenues total 500 million euros.
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