New Guards Group (NGG), the Farfetch-owned parent company of Palm Angels and Ambush, has filed for a form of bankruptcy protection in Italy as its pursuit for a buyer continues to trudge on.
According to various media platforms, the Italian fashion group has applied for a ‘composizione negoziata per la soluzione della crisi dímpresa’ (or CNC), a restructuring process for companies in financial distress that was introduced in Italy in 2021.
The proceeding, which does not align with that of an insolvency, will allow NGG to remain active on the market.
In a statement to FashionNetwork, the group said: “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 news comes on the back of reports that Authentic Brands Group had ended its licensing agreement with NGG for the distribution of its sportswear brand Reebok.
According to WWD, it is understood that NGG owes Authentic royalty payments of an estimated 300 million dollars, and was thus called on to immediately cease operations of the Reebok EU website and sale of the brand’s products.
NGG’s status had already been thrust into doubt last year upon the takeover of its parent company, Farfetch, by South Korean retail giant Coupang, which had saved the luxury platform from its own monetary woes.
Following the acquisition, Coupang had emphasised that it intended to focus on Farfetch’s e-tail business, making NGG’s future uncertain.