MILAN — Mariella Burani Fashion Group SpA is shaking up top management in an effort to strengthen the independence of its board as the company restructures debt.
Former chief financial officer Gabriele Fontanesi will take over as chief executive officer by September, replacing Giovanni Burani, who will become president and ceo of the group’s parent company Burani Designer Holdings NV.
Both Giovanni Burani and brother Andrea Burani will leave the board, the latter to concentrate on the group’s industrial management, the company said.
MBFG’s holdings include Mandarina Duck and it has licenses with La Perla (ready-to-wear), John Galliano (jewelry), and Aquascutum (footwear), among others. The company is reorganizing its business to ease net debts of 404.6 million euros, or $565.4 million, amid declining demand.
In the first quarter, the firm reported pretax losses of 1.6 million euros, or $2.1 million, after a 5.5 percent decline in revenues and analysts expect the company to close 2009 in the red.
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MBFG sold its stakes in jewelers Calgaro Srl this month and Rosato Srl in May to focus on apparel and leather goods, which together account for more than 90 percent of group turnover. The company added Giambattista Valli rtw to its license portfolio and asked creditor banks for a standstill agreement on its debt.
Separately Wednesday, the company’s leather goods unit, Antichi Pellettieri, applied to be included in that request.
MBFG’s share price gained 6 percent to 2.31 euros, or $3.23, by midday trading in Milan, while Antichi Pellettieri’s stock spiked 11.2 percent to 1 euro, or $1.40.