The restructuring procedure entails the phase-out of Gilmar’s licensing business, the sale of its industrial complex and transfer of its third-party manufacturing operations.

MILAN — Gilmar Divisione Industria SpA, the licensee of fashion brands No. 21, Paolo Pecora and Iceberg, has filed for protection measures with a Rimini Court, paperwork available on its corporate website revealed.

As part of the measure called “Composizione Negoziata della Crisi,” a voluntary, extrajudicial negotiated restructuring process, Gilmar has been assigned independent expert Mauro Morelli, who is tasked with conducting negotiations with creditors.

The fashion company has concurrently resorted to the ancillary court-mediated protection measures available to companies undergoing the restructuring procedure. While in place, they protect the company from enforcement proceedings and bankruptcy declarations.

The company reported positive operating profitability through 2019, when earnings before interest, taxes, depreciation and amortization stood at 3.5 million euros. Since 2020, it has experienced a contraction in sales and a drop in production value, which that year alone declined 44 percent versus a year earlier.

The company attributed the deteriorated performance to exogenous factors such as the havoc wrought by the COVID-19 pandemic, the war in Ukraine, the wholesale business crisis and increased energy costs, as well as a 25-million-euro loss in annual revenues after the termination of its M Missoni and Siviglia licenses.

As of Aug. 31, Gilmar Divisione Industria SpA’s total debt stood at 36.63 million euros. The company has more than 800 creditors, according to the filing.

A hearing on the confirmation of the protection measures and their duration has been scheduled for Nov.

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