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What the La Perla case means for future cross-border insolvencies

The La Perla insolvency case was one of the first major cross-border cases to take place post-Brexit, where the previous EU framework no longer applied. Courts, officeholders and stakeholders had to operate without automatic recognition or a shared system. There were parallel proceedings, interventions from government bodies and other obstacles in the way.

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However, thanks to the work of Quantuma and other stakeholders, La Perla was sold to an American investor after a coordinated transaction across the UK and Italy.

In this article - the final in a series of four - we will get away from the practical matters and talk about what it means for other insolvency cases that stretch across international borders.

Looking to the future

The La Perla case shows that cross-border insolvency remains workable after Brexit. Even with separate proceedings and limited legal tools, a coordinated outcome can still be achieved if parties are willing to coordinate effectively.

That outcome did not come from a single legal process. It depended on aligning legal proceedings, operational needs and stakeholder interests across the UK and Italy, and the tenacity of the Agent of the Joint Liquidators, Andrea Terraneo. Moving forward, similar cases will likely need a similar approach. Businesses with international structures will continue to face insolvency across multiple jurisdictions. Parallel proceedings will remain a feature and will increase their presence due to the post-Brexit legal environment.

It also demonstrates how those proceedings can be brought together. A coordinated framework allowed separate processes to move towards a single outcome. That approach reflects established thinking on cross-border cooperation, where structured coordination replaces automatic legal alignment. Courts and practitioners worked within their own systems, but still delivered a unified result. Future cases will depend on how well all parties can work together.

Precedents and wider significance

The case sets several important precedents. It was the first time multiple insolvency procedures affecting the same group were coordinated under the Italian Business Crisis and Insolvency Code. It also involved a level of cooperation between UK and Italian proceedings that had not been tested in this way since Brexit. Both courts adopted the EU Cross-Border Insolvency Court-to-Court Cooperation Principles to support coordination.

These developments matter because there is no longer a shared legal regime between the UK and the EU. The case shows that coordination is still possible, but it must be created through active engagement, rather than relying on automatic rules.

The wider significance lies in what the case achieved and what it exposed:

  • Parallel proceedings can be aligned without a single governing legal framework
  • Coordination requires formal structures, such as protocols, stakeholders and court engagement
  • Current legal tools have their limits, such as the absence of automatic recognition, and the legal framework depending on local laws, which may be insufficient in an insolvency scenario

The case has been described as a trailblazer for post-Brexit cross-border insolvency. It is likely to influence how similar cases are approached in future, not only for the outcome but also for the approach taken.

Lessons for businesses and practitioners

The case highlights several practical lessons for businesses with international structures.

First, group structure matters. The separation of intellectual property, holding entities and operating companies increases complexity when insolvency occurs.

Second, operational continuity drives value. In La Perla’s case, the manufacturing site in Bologna and its workforce were central to the business. Preserving that capability supported the outcome.

Third, timing is critical. Parallel proceedings can develop quickly once financial distress becomes public and can develop into a protracted legal battle. That leaves limited time to shape the process.

For practitioners, the case reinforces the need for early and informed action.

  • Understanding local legal systems is essential when no shared framework exists
  • Having some cross-border experience on your team makes coordination across jurisdictions smoother
  • Early engagement improves the chances of preserving value

The case also shows that coordination requires active effort. Time needs to be spent in aligning stakeholders and processes, not just executing transactions. Any business operating across borders should learn these lessons.

Get the full story

Quantuma has compiled a detailed case study on the La Perla insolvency. In it, you will find out how we solved complex cross-border challenges, saved an iconic fashion brand and set the tone for future cross-border insolvency cases.

Download your copy of the La Perla Whitepaper here.

Here to help

Businesses and advisers facing financial distress that spans more than one jurisdiction should seek specialist advice at an early stage. Early engagement allows more options to be considered and increases the likelihood of preserving value and operational continuity.

Quantuma’s restructuring and insolvency team advises companies, lenders and stakeholders on complex cross-border matters. To discuss a situation in confidence or learn more about the firm’s experience in multinational restructurings, please contact Carl Jackson or Andrea Terraneo from Quantuma’s Restructuring & Insolvency team.

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