Furla USA files for Chapter 11, cites reduced footfall
Furla USA has filed for voluntary bankruptcy under Chapter 11 in New York.
Reduced footfall in its US stores due to covid-19, compounded by an inability to renegotiate leases with its US landlords, was behind the move, the Furla group explained.
Furla was also hit by the bankruptcies of wholesale partner department stores like Neiman Marcus and Century 21, which led to the cancellation of orders, some of which were exclusive to the wholesale partner, plus the non-payment of outstanding balances.
The Italian accessories company will return to the “interesting and strategic” US market as a leaner, more contemporary and therefore, it hopes, stronger and more sustainable operation in the future, it said. Furla first entered the US market in 1989 and in 2019 the country represented 7% of its revenue.
Detailing specific reasons behind the move in court documents, Furla cited falling foot traffic in store locations more dependent on local shoppers than tourists, such as Boston and Indianapolis, for the two-year period prior to covid-19.
The company will shut four of its 14 US locations (of which eight are outlets) during its bankruptcy period. Furla’s existing Fifth Avenue flagship will not close permanently, but rather will be renovated in a style akin to the new store concept the group debuted in Milan in September 2020.
