The U.S. subsidiary of Italian luxury-goods company Furla SpA has filed for bankruptcy due to the impact of the COVID-19 pandemic on its brick-and-mortar and wholesale businesses, the Wall Street Journal reported. Furla (USA) Inc. filed for chapter 11 protection on Friday in the U.S. Bankruptcy Court in New York, planning to use the process to get rid of leases and debt, while focusing on a reorganization strategy of investing in e-commerce and wholesale. The Furla brand was created by the Furlanetto family in 1927. The Bologna, Italy-based parent company manufactures and sells products including bags, wallets, belts, scarves, jewelry, glasses, shoes and other accessories. With its financial troubles, New York-based Furla USA joins other well known brands and retailers — including some of its own wholesale customers, such as department-store operator Neiman Marcus Group Ltd. and off-price retailer Century 21 Department Stores LLC — that have gone out of business or filed for bankruptcy as a result of the coronavirus. Furla USA’s filing comes after revenue fell 67 percent in the first three quarters of this year compared with the same period in 2019. The wholesale business throughout the U.S., Central America and South America has also seen a significant reduction in revenue as customers were subject to government-mandated shutdowns.
