10 Corso Como seeks settlement to avoid insolvency

Milanese concept store, 10 Corso Como is seeking a court settlement to avoid filing Chapter 11, as the company which manages its distribution under a licensing agreement, Dieci Srl, owes the Italian state over 4 million euros in accumulated debts.

Carla Sozzani, who founded 10 Corso Como in 1990 and holds a 99 percent stake in Dieci, maintains that the future of the store is not in danger, as it is a separate entity from its parent company. In total Dieci reportedly owes a sum of 4,67 million euros plus another 500,000 euros in penalties to Equitalia, the company that collects taxes on behalf of the Italian states.

10 Corso Como seeks settlement to pay 4,67 million euro debt

Former news reports state that the amount due was derived from unpaid taxes - however the law firm representing Dieci, Ichino, revealed to FashionUnited the accumulated debts are in fact derived from social security debts, as Sozzani maintains she and 10 Corso Como have paid their taxes regularly.

Equitalia previously granted Dieci the right to pay the amount due in installments, but the company was unable to pay the second half of its installments on time due to financial difficulties brought on by the economic crisis. Dieci requested an extension, but this was denied. Equitalia previously requested that Dieci filed for insolvency after missing their payment, but following the tribunal proceedings from earlier this week, the two parties have agreed to find a settlement.

"Dieci has welcomed in positive and pragmatic terms Equitalia invitation to find a settlement," said the company in a statement. Ichino revealed that several options were currently under consideration but they are "optimistic." A decision in regards to final details of the settlement and the future of the company has been postponed until September 29.

Meanwhile, things have remained calm at 10 Corso Como. According to an statement from the store's headquarters in Milan, employees are "calm that the right decisions will be taken in the appropriate places." Crowds of international and national shoppers continue to visit the store on a daily basis, which shows virtually no sign that its future was ever in any danger.