7 Italian Fashion Brands that Went Bankrupt
Italian fashion is known all over the world for its luxury, elegance, and creativity.
From sleek tailoring to bold accessories, Italy has long been the heart of global fashion.
But behind the glitz and glamour, there's another side that rarely gets attention: failure.
Yup, even the biggest and most stylish names can hit rock bottom.
Some brands that once graced the runways in Milan or were spotted on celebrities end up closing their doors for good.
It's a bit shocking, but it happens more than people think.
This list dives into a few of those cases—real Italian fashion houses that hit financial walls hard, some of which completely disappeared from the scene.
Let's get into it.
Table of Contents
- 1. Moreschi
- 2. La Perla
- 3. New Guards Group
- 4. Roberto Cavalli
- 5. Gianfranco Ferré
- 6. Sonia Rykiel
- 7. Fiorucci
- References
1. Moreschi
Moreschi used to be one of those brands that quietly represented Italian craftsmanship at its finest.
They weren't flashy, but those who knew the name respected it.
Famous for their elegant leather shoes, especially for men, the company had stores in major cities and sold globally.
But as time went on, it got harder for them to keep up.
There was more competition, tastes were changing, and their price point didn't really click with younger buyers.
By February 2025, it was official: Moreschi was declared bankrupt by the Justice Court of Pavia.
That wasn't a rumor or some restructuring—they were done.
The brand, which had been around for decades, just couldn't survive the modern fashion game.
There were some hopes of selling off assets or maybe reviving the name under new leadership, but as of now, it looks like the end of the road.
It's sad when a company with that kind of history goes under, but it also shows how brutal fashion can be.
Being known for quality isn't always enough if your business model doesn't evolve.
2. La Perla
La Perla is still a recognizable name, especially when it comes to high-end lingerie.
But most people don't realize that behind the brand's image of luxury and sensuality, there's been a lot of trouble brewing.
The part of the company that actually made the lingerie—La Perla Manufacturing S.r.l.—ran into serious legal and financial issues.
By early 2024, the Bologna court stepped in and declared that part of the company officially insolvent.
So while the label itself is still around (technically), the backbone of the production was broken.
It's kind of like the engine going out on a beautiful car.
Sure, you can admire the design, but without that core piece, it doesn't move forward.
The fashion world saw this as another warning sign.
Even luxury lingerie, which you'd think would always have a market, isn't safe.
La Perla tried different strategies over the years—new collections, celebrity partnerships—but in the end, it wasn't enough to keep the manufacturing arm afloat.
This situation also created tons of uncertainty about how the brand will function going forward.
Will it outsource?
Can it maintain the same level of quality?
Those questions are still floating around.
3. New Guards Group
This one's a bit more behind the scenes.
New Guards Group isnt a fashion label most shoppers know, but they're the engine behind many hot brands like Off-White, Palm Angels, and more.
Basically, they handle the production and distribution magic that makes designer brands happen.
So when New Guards Group filed for bankruptcy protection in November 2024, it sent waves through the fashion industry.
They went through a process in Italy known as "composizione negoziata per la soluzione della crisi d'impresa"—which is a fancy way of saying, "we need help, fast." The company wasn't completely done, but it was definitely on life support.
The reason?
Their parent company, Farfetch, had its own drama and ended up getting acquired.
That move created all kinds of fallout, and New Guards Group got caught in the mess.
Here's a quick table to break down the chaos:
| Event | Date | Outcome |
|---|---|---|
| Farfetch struggles begin | Mid-2024 | Decline in stock and partnerships |
| Acquisition of Farfetch | Late 2024 | Triggered restructuring |
| New Guards Group files CNC | Nov 2024 | Protection and partial freeze |
| Impact on brands | Ongoing | Delays and uncertainty |
This one shows how complicated the fashion world is.
You dont have to be a failing designer—just being linked to the wrong financial structure can bring everything down.
4. Roberto Cavalli
Roberto Cavalli is a name that used to scream glitz.
Animal prints, body-hugging dresses, loud accessories—it was bold fashion for bold people.
The brand had its moment in the sun, especially in the 2000s.
But eventually, things started going downhill.
Tastes changed, the collections weren't connecting, and the brand lost its spark.
In 2019, the company filed for Chapter 7 bankruptcy in the US.
This is not the kind of bankruptcy where you restructure and hope for a comeback.
It's the kind where you liquidate everything and walk away.
After that, the brand was acquired by Dubai-based DAMAC Properties.
So technically, it's still alive—but it's not really Italian anymore.
This case is super interesting because it shows what happens when branding goes stale.
Even though Cavalli tried to update things with new creative directors and collaborations, it was too little too late.
The glitzy, glammy image they were known for just didn't vibe with where fashion was headed.
5. Gianfranco Ferré
This one hurts, especially for lovers of high-end tailoring.
Gianfranco Ferré was known as the "architect of fashion," which is a pretty awesome nickname.
He designed with structure and power in mind.
His clothes had a kind of elegance that made people feel sharp, almost like walking into a boardroom with a spotlight.
But after his death in 2007, things started to unravel.
The brand lost its direction, went through ownership changes, and eventually couldn't keep up.
In 2009, the company officially filed for bankruptcy.
This wasn't just about money.
It was about the brand losing its identity.
Without Ferré himself at the helm, it struggled to connect with audiences.
Every time they tried a new angle, it felt a little off.
Eventually, the name faded from the shelves, and today, it's basically a memory.
6. Sonia Rykiel
Okay, technically this one's not fully Italian—it's French—but it still matters in the broader European fashion scene, which overlaps a lot with Italy.
Sonia Rykiel was a Parisian label known for cool, artsy knitwear and rebellious vibes.
It was a favorite for women who wanted something a little edgy but still chic.
In 2019, the company filed for liquidation after its parent group failed to find a buyer.
The stores closed, the jobs were gone, and that was it.
It's another case of how being iconic doesn't mean you're invincible.
Italian fashion was closely tied to Sonia Rykiel through stores, partnerships, and distribution, so its collapse hit the ecosystem hard.
Plus, it was another reminder that even established brands with long histories aren't safe if the business side doesn't make sense anymore.
7. Fiorucci
Fiorucci is one of those names that feels like a time capsule.
It was loud, colorful, full of disco vibes, and just fun.
In the '70s and '80s, it was a brand that really caught on with young people.
Think angels on t-shirts, shiny leggings, pop art everything.
But by 1989, the company was in deep trouble.
It filed for bankruptcy and was sold off.
A few attempts were made to revive the name in later decades, but none really stuck.
The magic wasn't there anymore.
The sad part is that Fiorucci had tons of potential.
It could have evolved like other vintage brands, but the timing was wrong.
Fashion changed quickly, and they didn't adapt fast enough.
Fashion can be brutal.
One minute, a brand is everywhere—on magazine covers, runways, Instagram feeds—and the next, it's gone.
These seven Italian fashion brands (and one honorary mention) show just how fast things can change.
From poor financial planning to changing tastes or just plain bad luck, there are so many reasons a label can fall apart.
But even in failure, there's a story worth telling.
These brands made their mark, even if they couldn't stay in the game.
And who knows—maybe one or two of them will rise again someday.
Fashion loves a comeback.
