Sixty group creditors close to agree on rescue plan
Italian fashion group Sixty – which owns Miss Sixty, Energie, Killah, Murphy & Nye, Refrigiwear brands, is close to put an end to its financial struggles. After the 20-day the court of Chieti had given fashion group’s creditors to approve or veto the rescue plan, majority of the creditors have agreed to the plan.
In order to avoid bankruptcy and liquidation of the company, Sixty Group has met with all creditors to sign an agreement detailing how their current 380 million euros debt will be paid. The banks had the biggest exposure of over 250 million euro of a total debt of approximately 370 million euro, according to the latest reports.
This plan allows for a repayment of the group’s debt of up to 15-16 percent and the rescue of 50 jobs through the formation of a new company. Under this plan, the new company will only handle the Italian market and subsequently expand to the rest of Europe. Although at the moment the agreement is not approved, it is expected that all creditors, over 2,500, accept its terms. The group of former employees of the group will receive a total amount of 20 million euros to settle finally their relationship with the company. Sixty’s 88 percent of creditors agree on rescue plan 88 percent of the creditors have given their consent, as broadly reported by Italian press earlier this week.
The procedure for solving the company’s difficult situation still has to pass through a series of delicate steps. If the situation is solved positively, two of the Luxembourg companies now controlling Sixty S.p.A – Sixty International and Sixty S.p.A, which were both acquired by the Asian fund Crescent Hyde Park, will buy the Energie and Miss Sixty brands immediately and, by March 2014, the Refrigiwear and Murphy & Nye brands.
If all goes ahead, activities will start again with a new company that will absorb approximately 50 people. The remaining 30-40 people will be employed by a satellite company, however, for the remaining 300 people, the future will still be uncertain.
The Italian group came last February to an agreement with its workers to drastically reduce its workforce. Since then, the company has reduced its workforce to fifty employees, operating in its headquarters. To carry out this restructuring on the entire European market, Sixty Group has also slashed its network of outlets and has lost its corporate structure to avoid bankruptcy. Sixty Group has seen its sales reduced to 267 million euros at the end of 2011. The fashion group, which owns brands Miss Sixty, Energie, Refrigiwear, Killah and Murphy & Nye, is now controlled by two Luxembourg companies, Sixty International and Sixty S.A., part of the Asian fund.