The accessories company on Tuesday submitted its Chapter 11 Plan of Reorganization to the Court of New York. The court is expected to hold a hearing on approval of the plan on Jan. 28. The plan enables Furla USA to exit Chapter 11 swiftly.
“It was all very fast and smooth,” Furla’s president Giovanna Furlanetto told WWD in an exclusive interview. “There was no secured or bank debt, so the judge found our project credible and respectful of the requirements.” Furla USA has unsecured obligations that arise from payments owed to creditors including the Bologna, Italy-based parent.
As reported, Furla USA filed a filed a voluntary petition for relief under Chapter 11 on Nov. 6. This was made in the wake of the coronavirus pandemic and the lockdown, which forced Furla to temporarily shut its retail operations in March. Reduced traffic caused by the health emergency also impacted the performance of the existing stores. Furlanetto was pleased that the company had “achieved virtually all of its internal goals,” and said she expected Furla to emerge as “a stronger company” after this reorganization. There was never any intention to exit the American market, she noted.