Fashion Week started in Milan today, but all is not coming up daisies and Prada fairies. IT Holding SpA has filed for the Italian equivalent of Chapter 11 bankruptcy. You should care because IT Holding owns lovely labels like Gianfranco Ferré and Malo, as well Ittierre, the production and licensing company that makes Just Cavalli threads and also went bankrupt earlier this month. IT Holding's net debts total $376.7 million, and they're seeking money from outside investors. The company has already received a $38.3 million line of credit, which should enable them to maintain day-to-day operations.
But are the clothes they make as screwed as their bank account? Sources tell WWD the company is "back on its feet," since it already has money coming in and the majority shareholder has been frozen out. The Gianfranco Ferré show will go on, and Malo is planning a presentation. But Roberto Cavalli isn't comfortable with the state of Ittierre. Since it's broke, he canceled his Just Cavalli show in favor of a small showroom presentation of only fifteen looks, to take place today. "The difficult Ittierre situation leaves me with no guarantee and no certainty that my young line will be as avant-garde as always," Cavalli said this week. Oh dear. Who wants to rescue it? Takers? Or did you all blow your cash on old furniture at the YSL auction?