The end of Mariella Burani

By

Dominique Muret

Published
May 30, 2013

The curtain has finally fallen for the Mariella Burani Fashion Group. Founded in 1960 in Cavriago in Italy, the eponymous women’s ready-to-wear line underwent many transformations over the decades to become an accessible luxury empire.

After a hearing at the Reggio Emilia bankruptcy court, Mariella Burani Fashion Group Spa announced that it would be ceasing all business activity.

And so ends an important case in the history of ‘Made in Italy’. In 2010, MBFG fell into financial trouble after Walter and Giovanni Burani, former vice-president and CEO respectively, claimed fraudulent bankruptcy.

Last February, Walter and Giovanni Burani were sentenced to six years in jail for fraudulent bankruptcy of the Mariella Burani Fashion Group and its parent company, Burani Designer Holding. They were accused of manipulating the stock market through misinformation and illegal actions between 2007 and 2010.

Following the crash, MBFG was went into special administration to revive the company and to avoid closing them down. Efforts were not successful and in June 2012 the court of Reggio Emilia declared the group bankrupt. As part of the bankruptcy procedure, the judge granted the option to sell any remaining shares in the company but no buyer interest was shown.

The 132 remaining employees in Cavriago and those at the head office in Milan will be made redundant as of June 5.