Italian bag maker Furla starts formal debt restructuring talks

Italian handbag maker Furla SpA has kicked off formal debt restructuring talks with its lenders after years of losses.

The company has begun a negotiated crisis settlement process, one of the Italian legal procedures available to struggling firms, to stabilize its capital structure and relaunch the business, said people with knowledge of the matter, who spoke to Bloomberg on the condition of anonymity. 

Furla, which is taking financial advice from KPMG LLP, has been working on a plan to present to creditors, the people said. It had previously been working with Lazard Inc. A spokesperson for KPMG declined to comment.

Furla needs €25 million ($27 million) of new funding for its operations, which the owners have committed to providing, the people said. It owed €154 million to its bank lenders at the end of 2022, according to the latest available annual report seen by Bloomberg.

Furla, which also produces wallets and other accessories, was founded in Bologna in 1927 by the Furlanetto family, who still controls the group. Its annual report recorded revenues of €186 million and a loss of €27 million in 2022. The previous year, losses amounted to €52 million.