Costume National files for preventive composition procedure
Costume National is sailing through troubled waters. The Italian women's and men's ready-to-wear label filed with the Milan court for admission to a preventive composition procedure, a safeguard measure allowing the company to stay in business while negotiating with its creditors. Costume National was recently acquired by Japanese group Sequedge.
A source close to the matter, confirming the rumours reported in the local media, revealed that the company is shortly expected to present a recovery plan.
The brand was founded in 1986 by designer Ennio Capasa and his brother Carlo, and showed for many years in Paris. Recently, it had to deal with a critical financial situation. Last March, when the two Capasa brothers announced they were leaving the company, Italian financial daily paper Il Sole 24 Ore reported that Costume National's 2015 revenue had fallen to €6 million, while it previously amounted to €24 million.
Still, the two founders believed they could relaunch their brand and also re-acquire their stake. They actually had to sell off the company to their Japanese partner, the Sequedge investment fund, which in 2009 had acquired a 17% stake in Costume National.
According to the agreement reached between the two parties, Ennio and Carlo Capasa are free to "pursue new collaborations in a wide international context." Their intention appears to be to launch an Ennio Capasa line from next year.
Meanwhile, Sequedge has entrusted the management of Costume National to Stefano Frattini, and began to close down the stores in Rome, Milan and New York. The brand will not be showing this season, neither with menswear in June nor womenswear in September.
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