Monday, 24 August 2009

Italy Bails Out Its Debt-Ridden Luxury Brands – 24/8/09

It's not often that you hear Fascist dictator Benito Mussolini and luxury mentioned in the one paragraph. But that’s exactly what we read in a very interesting Bloomberg article over the weekend, which claimed Italian banks are spearheading corporate bailouts, something that Mussolini did after the Great Depression.


The article claims that, “So far, Italy has avoided the high-profile bankruptcies that have plagued European and U.S. companies,” like Christian Lacroix SNC. It also goes on to say that “Only one publicly traded company, IT Holding SpA, owner of the Gianfranco Ferre fashion house, has filed for bankruptcy protection this year, amid the worst recession in six decades. No publicly traded company has gone out of business."


Another interesting point we read is that, “About 130 lenders agreed this month to let as many as a million small and medium-sized companies postpone loan payments for a year, giving them additional liquidity of as much as 40 billion euros.”


So the Italian banks are once again the knights in shining armour for their luxury industry. That is ‘benissimo’ [very good] to hear. They must have found the endless pot of gold at the end of their rainbow.


Article by: Melinda O'Rourke

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au