MILAN — The hundreds of creditors of the Mariella Burani Fashion Group will surely be eyeing the new developments related to its collapse.
Italy’s equivalent of the Supreme Court ruled this week that the city of Milan was not “competent,” or allowed to have the Burani Designer Holding bankruptcy case judged in its court. The Supreme Court accepted the appeal presented by the Burani family’s lawyers more than a year ago and overturns a previous decision made by a Milan appeals court in June 2010. According to the latter, the group was based in Milan, while the Supreme Court now says it was legally headquartered in Cavriago, Italy.
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According to the Supreme Court, the decision to hold the trial in Milan had a direct effect on the penal inquest, which led to the arrest of former Mariella Burani Fashion Group chief executive officer Giovanni Burani, who served a two-month prison sentence in summer 2010. The new verdict means a new judge will be appointed in Reggio Emilia, the city nearest to Cavriago, where the Buranis have always contended the company was based. For this reason, they pushed for the trial to take place in Reggio Emilia, and not in Milan.
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Confusingly, the bankruptcy trial will now move from Milan to Reggio Emilia, while the penal trail for fraudulent bankruptcy will continue to be held in Milan, “because it follows an initiative of a [local] prosecutor,” stated the Supreme Court.
This decision could also affect two other trials related to Mariella Burani Fashion Holding and Mariella Burani Fashion Group.
Meanwhile, according to an Italian report, Giovanni Burani and his wife, Antonia Anghinolfi, have founded a new company, called Tristar Srl, offering their services as consultants in financial investments. It is widely believed Burani masterminded the expansion of the firm into an apparel and accessories conglomerate in the early years of the Noughts, piling up the debt and dabbling too freely and creatively with finance, according to several sources.