Italservices, Italian specialized jeanswear manufacturer and owner of brands including Met and Cycle, has requested a procedure for an arrangement with reserve.

According to local newspapers, owner and president Moreno Giuriato has formally put in his request at the Padoa Tribunal. The intention is to create a new company - Met Srl – 100% controlled by Italservices Spa that could rent the company, or part of it, to new financial or industrial partners who could save it in this difficult moment.

Until a few days ago, they had pointed out the British equity fund Richardson to be interested in participating in the operation. Apparently there was an agreement managed through Deloitte that might have brought about €15 million to be “poured” in two phases, each bringing around €7.5 million. Though, the agreement could not be finalized.

Italservices gathers brands such as Met, Met&Friends and Cycle, and owns majority shares of other companies, including a subsidiary distributing their brands in the US, JT Industries Spa, and It’s News Spa that manages the Nolita and Ra-Re brands.

Apparently Italservices’ sales had registered a sudden stop since their revenues had passed from the about €88 million sales registered in 2012 to the recent €15 million, plus counts debts with banks for about €31 million and over €30 million with suppliers. Another frail aspect is the fact that the company has been selling most of its products in the Italian market, presently facing a very slow consumption phase. Italservices has also recently asked for redundancy payment for 130 of its employees.

Thanks to the arrangement with reserve procedure, creditors’ requests will be “frozen” for a period that authorities might fix for 60 up to 120 days to be eventually postponed for another 60 days. Within this time the company will have to present a plan that can lead to an agreement with creditors.