The La Perla Case – A trailblazing case in post-Brexit cross-border insolvency
Delivering a cutting-edge transaction for Italian luxury fashion brand La Perla with 200 jobs saved.
When the Italian luxury fashion brand La Perla entered insolvency, it was clear this would not be a typical liquidation process. The business was split across two countries. Intellectual property and corporate control sat in the UK, while manufacturing, day-to-day operations and the majority of employees were in Italy.
Before any sale or restructuring could take place, the parties involved had to find a way to manage them together. In our articles and Whitepaper, we will share how Quantuma did just that.
Outcome
Joint Liquidators from Quantuma entered into the first cross-border insolvency protocol between two parallel insolvency proceedings in the UK and in a member of the European Union (Italy) after Brexit. This insolvency transaction for La Perla Global Management (UK) Limited (La Perla) represents the first cross-border insolvency transaction post-Brexit involving parallel proceedings in the UK and Italy.
The La Perla case also saw the first successful coordination of different insolvency procedures opened over members of the same Group in Italy, as well as the first appointment of an agent to assist with the negotiations in Italy and abridge the different legislations applicable.
The Joint Liquidators successfully achieved the best financial outcome for the English Liquidation and the best social outcome for the Italian insolvency procedures, with 100% job retention and an additional 40 hirings through the joint sale.
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.
Saving La Perla: How Quantuma helped rescue an iconic Italian brand
Our Whitepaper shares the story of La Perla and the cutting-edge approach taken by our team to ensure the continued viability and prosperity of this celebrated Italian lingerie brand.
Why was La Perla’s insolvency such a challenge?
When the luxury fashion brand La Perla entered insolvency, the case was unusually complex due to its cross-border structure. Intellectual property and corporate control were based in the UK, while manufacturing, day-to-day operations and the majority of employees were in Italy. Although multinational operations are common, Brexit had removed the legal framework that once enabled smooth cross-border insolvency processes. As a result, authority was unclear, control was divided, and decisions could not be taken in one place.
Quantuma, as the Joint Liquidators of La Perla’s UK entity, had a challenge on its hands. In this series of four articles, we explain the issues in more detail.
How Quantuma made cross-border insolvency possible post-Brexit
The start of La Perla’s insolvency was not straightforward. It began with competing proceedings in the UK and Italy, divided authority and limited cross-border powers. Without coordination between the UK and Italian parties, it was likely the business would fragment, putting an iconic brand and around 200 jobs at risk.
It became imperative to stabilise the position, bring the parties together, and create a decision-making structure across both jurisdictions.
In this article – the second in a series of four – we will explain how we developed that strategy.
Structuring and delivering the La Perla insolvency
Once Quantuma and the other parties involved in the La Perla insolvency had finally broken the deadlock that was grinding progress to a halt, it was time for delivery. Could the parties formulate and execute a transaction that preserved the iconic La Perla brand and 200 jobs?
As it was throughout this insolvency, it would not be straightforward. Assets, rights and operations were spread across jurisdictions and separate proceedings. Any misstep could ruin the outcome.
In this article – the third in our series of four – we explain how we structured the transaction, managed the various stakeholders, and achieved what many thought was impossible.
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.
However, thanks to the work of our team 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 get away from the practical matters and talk about what it means for other insolvency cases that stretch across international borders.
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 & 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.