Italian luxury manufacturer Factory placed in receivership
Factory, a company renowned for its expertise in leather, which for years managed Neil Barrett's collections under license, has been placed in receivership. The Tuscan manufacturer, which also owns the Drome brand, has struggled financially and was unable to recover after the Covid-19 crisis.
In late March, the company based in Fucecchio, near Florence, sought protection under a preventive concordat, a safeguard procedure similar to French judicial reorganisation, but it did not succeed. Consequently, Factory had no choice but to file for judicial liquidation. "No one can believe what has happened. It was a historic and strong company," said a former Factory executive.
"The crisis primarily arose due to the difficulties during the pandemic. The situation worsened with the European sanctions on the luxury goods trade following Russia's invasion of Ukraine. This region was one of Factory's main markets. With its very high positioning, the company was heavily impacted by the sanctions," explained the manager.
During this period, Factory also lost its licensing contract with Neil Barrett, which expired after the autumn/winter 2021/2022 season and was not renewed. This put the company in a critical financial situation, unable to recover. Despite employing over 40 people, Factory still managed licensed collections for three luxury brands, in addition to its own brand Drome. According to local press reports, its revenue decreased from 36 million euros in 2020 to 6 million euros in 2022.
Founder Ferrero Rosati started his business in 1974 with the creation of the leather ready-to-wear brand Santacroce. He also began producing for luxury houses, including Prada, to whom he sold a majority stake in his company in 2001.
In 2008, he established a new company, Factory, to support the development of Drome, the ready-to-wear brand launched by his daughter Marianna Rosati. Renowned for its work on skins and leathers, the women's label quickly achieved success, attracting up to 250 multi-brand clients.
"The brand also had to cease its activities. Currently, no advisor is involved in any potential acquisition," stated the executive.
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