Fosun Fashion Group buys Caruso’s debt

Italian luxury menswear brand Caruso has reached an agreement with its parent group, Fosun Fashion Group (FFG), and its creditors to gain some liquidity to recover from the pandemic’s impact.

The Chinese group is buying back the designer company’s financial debts at a discounted price, providing Caruso with a capital increase.

The financial terms of the deals were not disclosed, the Italian label said as a result of the agreement, it holds no financial liabilities toward the banks that extended their original credits.

Marco Angeloni, president and chief executive officer of Caruso, said in to ‘WWD’ that “The company is an invaluable asset, as it is specialized especially in the manufacturing of luxury coats that are among the most difficult items to produce with our quality.” He said added that “After a yearlong negotiation, shareholders acknowledged the value of this deal which I proposed.”

Commenting on the agreement, FFG’s president Joann Cheng said the group “firmly believes that this agreement will help Caruso withstand the impact of the epidemic, and at the same time, with the collaboration of FFG’s portfolio of resources, further accelerate its global development.”