Under The Epidemic Situation, Italian Luxury Underwear Brand La Perla Restart Plan Is Blocked

In February, Italian luxury underwear brand La Perla just launched a 200 million euro capital increase plan by issuing nearly 45 million new shares to support the group's business development and acquisition plan.

However, the new outbreak and long-term blockade forced La Perla to postpone its goal of restart. To achieve the previously set target of 130 million euro revenue in 2020 and 200 million euro in 2022, the road is still very difficult, and reaching an agreement with new investors will need to wait at least until the end of June.

Last summer, the group announced 126 job cuts, which were withdrawn after a long and tense confrontation with the union.

In the past year, the group has also significantly reduced its brand stores in Italy and around the world, closing 38 stores in a year, leaving 92.

The closure of stores and strict cost control measures had a negative impact on revenue, with the group's sales in 2019 falling from 106 million euro to 86 million euro, and the total loss reached 89 million euro. The good news is that in the second half of 2019, the remaining stores of the brand recorded significant sales growth, which is enough to convince the company that they have adopted the right strategy.

Under the guidance of its parent company, tennor holding, La Perla is now choosing to focus on its initial core business (swimsuit and lingerie) and stay in the high-end market. Due to cost factors, the company has cut down two product lines, men's wear and ready-made clothes.

2020 is still a very difficult year for La Perla. The unions are deeply concerned. Teresa Ruffo, a representative of the Bologna union group cgil, said: "the company's goal was to reach a break even point. This situation has been changed better than last year. But we have held a meeting with top management to understand the change. "

La Perla's headquarters in Bologna employs more than 400 people and employs 1150 people worldwide. The company's operations have been sustained through layoffs, telework and shift production.

La Perla was founded by ADA masotti in 1954. In 2013, as part of the bankruptcy proceedings, Pacific global management bought La Perla at an auction for 69 million euros. After being acquired by global holding, the brand was renamed from global holding in February 2018. La Perla was listed on the Paris Stock Exchange in September last year.