New Guards Group applies for bankruptcy protection measure in Italy

New Guards Group (NGG) has so far failed to find a buyer, and is looking for a solution to its financial difficulties as it seeks to buy time while restructuring. The Italian fashion group controlled by Farfetch, which owns among others Palm Angels and Alanui, and is the licensee of Off-White, has applied for a so-called composizione negoziata per la soluzione della crisi d’impresa (negotiated settlement to solve company crises, or CNC), a procedure introduced in Italy in 2021 allowing companies faced with financial difficulties, or in the early stages of a financial emergency, to stabilise their situation while remaining active on the market.

“NGG has applied for a CNC according to Italian legislation, aiming to restructure financially in order to avoid filing for bankruptcy. The CNC [procedure] will allow NGG to continue doing business with its partners and clients,” the group has told FashionNetwork.com. The CNC procedure is designed to help companies restructure and manage their debt. It is not an insolvency procedure, and NGG will continue its activity while the CNC is in force.

A source close to the matter has told FashionNetwork.com that NGG is striving to find the best possible solution to execute a successful financial restructuring, and regards its CNC application as a necessary step that could give the group time and the support it needs to chart the ideal route ahead.

A few weeks ago, Authentic Brands Group (ABG) terminated the licence agreement it had signed with NGG two years ago for the distribution of Reebok footwear and apparel. According to WWD, NGG is indebted for approximately $300 million with ABG for unpaid royalties.

Meanwhile, NGG’s leading label Off-White, under Creative Director Ib Kamara, who took over from Virgil Abloh after the latter passed away, was sold in September 2024 by LVMH to New York-based brand-management company Bluestar Alliance LLC. NGG’s licence contract for Off-White is reportedly set to be renegotiated in 2026.

In 2019, Farfetch shelled out nearly €550 million to buy the Italian group, at the time a key player in the streetwear segment. But consumer demand for sportswear and streetwear has since dropped sharply, and NGG’s performance has suffered as a result, especially after the death of Off-White’s celebrity designer Abloh.

Farfetch, on the brink of insolvency as fashion e-tailers in general have been experiencing difficulties, ended up being acquired by Korean e-commerce giant Coupang at the end of 2023. Coupang indicated from the outset that it wished to focus on Farfetch’s e-tail business. Hence spelling doom for NGG’s future, if the latter won’t manage to find a buyer.