Italian fashion house Trussardi SpA is on the verge of a deal that will see the brand change hands and its assets sold off as part of a plan to restructure its debt. Anonymous sources have revealed that the struggling company is likely to be sold to Miroglio Group, a prominent manufacturer and distributor of ready-to-wear fashion. The proceeds from the sale will be used to repay Trussardi’s existing creditors. However, not all Trussardi stores will be part of the deal, with several expected to close. The final approval for the transaction will need to come from the Italian court overseeing Trussardi’s restructuring process.

Trussardi has been facing financial difficulties for some time, but the lack of interest from potential buyers in reviving the brand highlights a larger trend in the luxury sector. After experiencing a significant boost during the COVID-19 pandemic, the luxury industry is now witnessing a decline in demand. Major fashion companies like Burberry, Richemont, LVMH, and Kering have all revised their profit forecasts due to weaker demand in key markets such as the US and China.

Currently owned by Italian turnaround fund QuattroR, Trussardi offers clothing and accessories for men and women, including belts, bags, and wallets. Representatives for Trussardi, QuattroR, and Miroglio have chosen not to comment on the potential deal.

Trussardi’s troubles were further amplified by its exposure to the Russian market, which suffered after the invasion of Ukraine in early 2022 and the subsequent implementation of sanctions. Consequently, the brand has struggled to recover from this setback.

As the fashion industry grapples with challenging times, the fate of Trussardi and its potential new owner, Miroglio Group, hangs in the balance. Whether Trussardi can successfully reinvent itself under new ownership and regain its position in the competitive fashion landscape will depend on various factors, including market conditions and consumer demand. Only time will reveal the outcome of this deal.

Useful links:
1. Business of Fashion: Trussardi Nears Sale in Debt Restructuring
2. Reuters: Exclusive – Italian Fashion Brand Trussardi Nears Debt Restructuring Deal