Struggling Italian luxury house Roberto Cavalli has shuttered its North American operations, hours after the brand said that it was seeking a deal with creditors to stave off a bankruptcy filing and less than a week after the departure of its creative director, Paul Surridge, the New York Times reported. The brand confirmed on Friday that it intended to file a plan with Italian courts that would allow the business to keep running while it secured new investors or ownership. The fashion house, headquartered in Florence and famous for its flesh-baring, flamboyant designs (often in animal prints), has fallen from favor with its fan base in recent years, struggling to turn around falling sales and to maintain its profile in an increasingly competitive global luxury market dominated by the major conglomerates. The Italian private equity company Clessidra has owned a 90 percent stake in Cavalli since 2015. A Cavalli spokesman confirmed today that Art Fashion Corporation, the name of the brand’s North American subsidiary, would liquidate under chapter 7 of the U.S. Bankruptcy Code by April 4 as part of a restructuring effort.
